How I Use Technical Analysis – Discretionary decision making.

I do not necessarily rely on Technical Analysis for entry and exit signals, believing that there is rarely a critical point at which one must act.   I prefer not to use such signals as a basis for mechanical trading even although doing so limits conflicting trader bias.

Rather the assessment of historical and current market conditions it provides is used as a resource to answer pertinent questions posed, questions such as:

Will I be able to sell tomorrow, or at sometime in the near future, at a better price than I can today? One should delay selling in an uptrending price pattern.

How long should I delay selling if the stock is in an uptrend? Multiple moving averages advocated by Daryl Guppy is one of the best tools, but I also like examining for loss of momentum the parabolic indicator curves of stocks being monitored.

Will I be able to buy this oversold stock more cheaply and safely at a later date? Once again clear evidence of trend reversal should be looked for before accumulating stock.

With this approach the decision making process is a complex intellectual process in which as much information as possible is considered.

2 replies

  1. Exellent research Ken
    I have been fortunate enough to buy small amounts of US stocks when Aust $ was $1.10 US
    Berkshire B shares Royal Carribean & Carnival Lines To increase my spread it is worthwhile
    Cheers Kevin Parken

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