What is a good price to enter? let technicals guide us instead of the price

Over time, I have often received the question asking what is a good entry price.  After trading for a while, I have found out that it could be better to follow technicals more than some "target" prices (estimated resistance or support levels).

First, resistance and support levels are not a singular price point.  Usually, the resistance or support is a zone (a range of prices), not so much a "specific" price.  As most of us know, "trend is our friend" and thus, we are recommended to trade with the ongoing trend.  To understand this better, let us look at Microsoft $MSFT using the 1D chart as an example:

Looking at the 1D chart above, we can see that the price is on a decline.  From Stochastic and MACD indicators, we can see that it is on a downtrend.  

Other moving averages (MA) technical references above are based on simple and exponential MA.  From the MA technicals above, this points to a likely sell trend based on the above.

If we are to consider other technical indicators such as MACD, ADX or CCI, these would point to a likely "sell" scenario too.  Now, I have extracted some technical indicators from investing dot com to ascertain the support and resistance levels.   Now that we understand that this stock is on a downtrend, let us look at an example where we hope to go "long" on the stock.  This means that we are hoping to buy after the reversal of the current downtrend.

From the technical indicators above, we can see that both classic moving averages (MA) and Fibonacci present different resistance (R1, R2 & R3) and support (S1, S2 & S3) levels.  If we are to set up some potential limit order (to buy long, that is expecting a reverse from the downtrend), some of us will look at these to try to establish potential entry prices.  Some may rely on Fibonacci and some on classic MA.  If they are to set their entry points based on S1, some could use the price of $239.52 to enter, and some could use $241.41 based on Fibonacci.  However, some using classic MA may set a higher limit order at a price of $239.60 or $239.40 depending on how they feel about the stock being more bullish or bearish. The same could apply to investors relying on Fibonacci.  Thus, the support and resistance are more of a zone, rather than a singular price point.

For some investors, they may rely on classic MA S1 as a "stop-loss".  Thus, when the stock reaches a certain price point, this could trigger a sell trade (to prevent further "losses").  For another investor, this could activate a buy trade.  However, we do not know the number of buy or sell orders when the price reaches S1.  Thus, it is possible that this could trigger more net buy (leading to a potential reversal) or more net sell (leading to price dropping further). 

In the event of a reversal and if the target price was set too low, the limit order to buy long may not be triggered.  However, if we follow the technicals (after identifying and confirming) the reversal, we may not miss this opportunity.

Thus, I do recommend that we rely on technical and not just target prices to trigger our limit order.  Let us set price alerts based on the various support and resistance levels but let us use the technical indicators to better guide us.