KAB Strategy Limited is an independent organization that conducts technical analysis and research on financial products for its group shareholders and provides them suggestions.

KAB Strategy Limited only provides the above services for internal use in the group.

To see our sample analysis, to check our Analysis Page.

 

What is technical analysis?

In short, this is one of the best methods for predicting the price of any asset. This is because almost all financial markets follow the same psychological laws. Therefore, technical analysis uses various methods to study the intrinsic life of financial markets, their emotional states, namely the level of optimism and pessimism of participants. Unlike fundamental analysis, technical analysis does not take into account external fundamental factors that affect prices, such as competition or market demand for products. When predicting prices, technical analysts use tools to search for patterns on charts and perform calculations. People believe that all factors that affect the status of the issuing company have already had an impact on the price of the product. This viewpoint also applies to any other trading tool.

Why our technical analysis is special and advanced?

We use various technical analysis methods and dig deeply into the psychology and characteristics underlying every method and theory, and optimize them. Take Elliott Wave Theory (EWT) for example, which is one of our major theory in analyzing stocks and indices. Normal Elliott Wave patterns take the form of five waves of a specific pattern. Three of these waves (labeled “1”, “3” and “5”), cause the development of the overall directional movement of prices. They are separated by two interruptions against the trend direction (labeled “2” and “4”) which, in turn, cause the fluctuation that is naturally observed in the price action. In other words, waves “1”, “3” and “5” describe the main direction of the move, while waves two and four are seen as pauses. Each of these five waves plays a critical role in the construction of the waves and the overall description of the movement. However, we dig even deeper in the characteristics of wave “3” and “4”, to let these two waves combine in some cases, to avoid most case of failures of wrongly take profit levels in wave “3”. Also, we optimized degrees of waves. Initially, R.N. Elliott recognized nine different degrees of waves. They ranged from degrees as small as ripples on an hourly chart to the largest wave degree he could assume existed from the data that was available to him at the time. Since, as the theory implies, the degree progression in both directions is infinite, we add 7 additional wave degrees, of which 4 are of larger degree than the initial nine, while the remaining three were of lesser degree. We add a general-but-more-detailed framework of the various wave degrees with respect to the range of span or duration of each degree. This addition, helps to make sure that the most adequate or relevant time-frame chart for each wave degree would appear visibly. This avoids counting a wave degree without knowing what the minimum and maximum durations of this wave are, as well as what time-frame charts to use to chart this wave degree.

We also focus on the personality of each method and its components. E.g. we focus on wave personality which offers an in-depth focus on the aspect of crowd psychology and behavior of the market participants. We improved the framework that enhances our understanding of the market action and behavior that was initially introduced and discussed in the classical approach of technical analysis. The personality of each wave plays a more integral part in the reflection of the mass psychology it embodies. As such, our analysts assume that each wave has its own mark or "signature" which generally reflects the psychology of that phase under observation. Thus, we improved the understanding how and why the waves develop. This help to predict the end of each trend.