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Showing posts with the label target price

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

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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...