Past Market Movements: Prices Move Volatile Upward

Examination of Past Market Movements of Malaysia KLSE
What can we learn from the history of overall market movements in the Malaysia KLSE?

1. Generally Upward Trend
2. Trends Not Consistent
3. Irregular Price Patterns
4. Prices Can Be Very Volatile
5. Prices Move Volatile Upward
6. Big Booms Are Irregular

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5. Prices Move Volatile Upward

It appears that prices can move very much further from the trend line on the up side than on the downside.

Except for a short period at certain times in severe bear market or market crash, the prices do not move very far from the trend line on the down side.

But it can move a considerable distance on the up side.

It would appear also that there are more up years than down years. This means that the prices tend to build up slowly over several years and then fall much faster than they rise.

However, big upward movements tend to be followed by sharp downward movements. It is thus a lot safer to buy when the prices are below their intrinsic value than when they are high.