Can we buy low with technical analysis?

[prst]

Hi,

we see that most of the technical strategies advocate buying when a certain resistance/threshold is broken.
for example, breakout of a channel is an example of this...

Just wanted views of you people.
does TA guarantee that we buy low and sell higher?
for example, consider current price of SBI or LT .
They are are at rock bottom prices, but TA does not tell us to buy until prices reach some higher level..

 

[DanPickUp]

Hi,

we see that most of the technical strategies advocate buying when a certain resistance/threshold is broken.
for example, breakout of a channel is an example of this...

Just wanted views of you people.
does TA guarantee that we buy low and sell higher?
for example, consider current price of SBI or LT .
They are are at rock bottom prices, but TA does not tell us to buy until prices reach some higher level..

Prst

If you do not any live trades to experience the answer for that, then at least you are enough long a member of this forum to have learned, that there is no guarantee in any strategy and what ever TA you use in any trades you do.

Use good money management and risk management with proper exit rules to manage any of your live trades and that is the only guarantee you will have to stay longer in the game.

Tc

DanPickUp

 

[johnnypareek]

Hey,

This is not for your Q but for all who are new.

Don't try to figure out when to buy, try to figure out "When to Sell".

johnny

Hi,

we see that most of the technical strategies advocate buying when a certain resistance/threshold is broken.
for example, breakout of a channel is an example of this...

Just wanted views of you people.
does TA guarantee that we buy low and sell higher?
for example, consider current price of SBI or LT .
They are are at rock bottom prices, but TA does not tell us to buy until prices reach some higher level..

 

[rajsingh]

Hi,

we see that most of the technical strategies advocate buying when a certain resistance/threshold is broken.
for example, breakout of a channel is an example of this...

Just wanted views of you people.
does TA guarantee that we buy low and sell higher?
for example, consider current price of SBI or LT .
They are are at rock bottom prices, but TA does not tell us to buy until prices reach some higher level..

Since u are aware of resistance I am sure u must be aware of support...

If u don't want to buy on break of R , buy at support. There's no guarantee of success of trade either way. No harm in doing it this way.

 

[praveen taneja]

Hi,

we see that most of the technical strategies advocate buying when a certain resistance/threshold is broken.
for example, breakout of a channel is an example of this...

Just wanted views of you people.
does TA guarantee that we buy low and sell higher?
for example, consider current price of SBI or LT .
They are are at rock bottom prices, but TA does not tell us to buy until prices reach some higher level..

Bro TA/FA is just and an indicator of which side trading happening

with that indicator its ur experience which tells u what to do

Whom I call Tukka Other call Intelligence:thumb::thumb:

 

[prst]

Prst

If you do not any live trades to experience the answer for that, then at least you are enough long a member of this forum to have learned, that there is no guarantee in any strategy and what ever TA you use in any trades you do.

Use good money management and risk management with proper exit rules to manage any of your live trades and that is the only guarantee you will have to stay longer in the game.

Tc

DanPickUp

Thanks Dan..
Yea, i understood what ur trying to say..
have been quite a while in this wonderful forum, learning whatever i know till date about trading..
Had my shares of good and bad trades.. had moments where i didnt have any money management in place.. continued praying for my Options to rise, instead of booking loss early..

regd my post, i was contrasting my trading strategy with my dad's.
my dad believes in buying low any good company like the SBIs and LTs of the world.
my trades were on breakouts usually.

 

[DanPickUp]

Thanks Dan..
Yea, i understood what ur trying to say..
have been quite a while in this wonderful forum, learning whatever i know till date about trading..
Had my shares of good and bad trades.. had moments where i didnt have any money management in place.. continued praying for my Options to rise, instead of booking loss early..

regd my post, i was contrasting my trading strategy with my dad's.
my dad believes in buying low any good company like the SBIs and LTs of the world.
my trades were on breakouts usually.

Fine.

So how doe's your dad make a decision, that he now buys a good company at low and not at what ever? Any math or financial ratios behind it or just TA? Buying a stock with 50 penny value doe's not necessary mean, that the stock is cheap.

Trading just on breakouts is also not an easy thing. What is your experience with that or how do bring your self in a position, where you feel, that you have good odds to take this breakout.

Tc

DanPickUp

 

[prst]

Fine.

So how doe's your dad make a decision, that he now buys a good company at low and not at what ever? Any math or financial ratios behind it or just TA? Buying a stock with 50 penny value doe's not necessary mean, that the stock is cheap.

Trading just on breakouts is also not an easy thing. What is your experience with that or how do bring your self in a position, where you feel, that you have good odds to take this breakout.

Tc

DanPickUp

Myself i use a combination of price pattern(usually trendline break or a channel breakout ) and stochs supported by volumes.
I had some good entries with this system, but due to poor money management, not having a rigid stop loss and greed i made mess of many opportunities.
Iam going to stick around with my system and concentrate more on MM next time when i trade.
have been unable to trade since last 3 months, due to my hectic office work. (am into software engineering field)

my dad uses comparatively low prices to make a buy decision.
for ex, he says gold is low and can be bought at current levels.
even sbi and LT are a buy now , compared to the high prices they had couple of months ago.. and these biggies will recover even after a while.. he believes more in the fundamentals of the company.

 

[INDIA1]

please sugest some software to help trading

 

[kaly422000]

Myself i use a combination of price pattern(usually trendline break or a channel breakout ) and stochs supported by volumes.
I had some good entries with this system, but due to poor money management, not having a rigid stop loss and greed i made mess of many opportunities.
Iam going to stick around with my system and concentrate more on MM next time when i trade.
have been unable to trade since last 3 months, due to my hectic office work. (am into software engineering field)

my dad uses comparatively low prices to make a buy decision.
for ex, he says gold is low and can be bought at current levels.
even sbi and LT are a buy now , compared to the high prices they had couple of months ago.. and these biggies will recover even after a while.. he believes more in the fundamentals of the company.

sbi made a recent low at 1710, in that price area some technical analysis can suggest buying in that area . i think one can have to learn vsa,elliot wave and gann , for such analysis