Feng Han, CFA, CMTHead of Technical Research in Asia, Fidelity Investments
Feng Han, as the Head of Technical Research in Asia with FIL Investments Limited, works closely with the fundamental bottom-up driven investment team across the Asia Pacific region on stock selections as well as market analysis and sector recommendations through a "sum of charts" approach incorporating macro indicators, valuations/earnings and an extensive range of technical indicators including trend, momentum, breadth, sentiment, cycle, seasonality, candle charts and pattern recognition. Feng is a speaker at the IFTA 2014 London conference on Heikin Ashi chart.
Integrating Price with Earnings
Fundamental and technical analysis methods are radically different approaches to market forecasting, and are perceived as contradictory by some investors. I believe, however, stock trends on fundamentals but trade on technicals, and thus the two forms of analysis complement each other by adding value to the other.
As one of my favorite Japanese saying goes, 「株価は価値プラス、需給プラス、人気」, i.e., stock price is function of value plus supply-demand plus popularity. Indeed, Value-Momentum has become one of standard screenings among quantitative research using both technical and fundamental criteria simultaneously. However, very few software has accomplished in combining the two in one single data as an indicator to analyze and forecast stock prices to employ the strengths of both.
In this presentation I would like to introduce my approach to integrating price data with earnings: how it is constructed, why it should work, and more importantly, how it can work as both a trend and momentum indicator.
Japanese market indices and stocks are used as an example under the study in the presentation. However, this indicator should have general application in other markets where「株価は価値プラス、需給プラス、人気」holds true.
CFAs & Technical Analysis: Why and how do CFAs use Technical Analysis