How to pick an entry in the current market

[matty193]

With all the strength of the market over the last 6 months or so, I'm confused in working out how to time an entry when so many technical indicators appear that a stock has peaked.

For example, many indicators show that a lot of stocks are overbought, have peak MACDs when compared to many preceding years, yet still manage to continue the climb back to where they were.

I'm sure it is my inexperience and misunderstanding in interpreting such signals, but how can you buy into the current uptrend when analysis of the charts says they've peaked? (the indicators, but not the price)

Look at the CBA, ANZ, WBC, NAB over the last six months and it is clear the negative signals these stocks had back in March. Of course, things could have got worse, but looking at the technicals now indicates that things had bottomed at that stage.

Any advice and information would be much appreciated!

 

[white_crane]

Sounds like you have no trading set up/system in place. You need to find your own system that works for you. What works great for someone else may be disastrous for you.

Also, what's the point in using 538676 indicators if you have no idea what they represent? Too much information perhaps?

 

[jono1887]

Look at the CBA, ANZ, WBC, NAB over the last six months and it is clear the negative signals these stocks had back in March. Of course, things could have got worse, but looking at the technicals now indicates that things had bottomed at that stage.

Any advice and information would be much appreciated!

Is looking at technical indicators in hindsight any useful?? Its easy to apply an indicator to something that has already occurred, but it doesnt mean that they will work again later...

 

[Kryzz]

Many technical traders will use basic breakouts to time an entry, primarily looking at volume and price action, without the use of indicators. Indicators can remain "peaked" as you put it for extended periods of time, thus providing no insight.

Have look through the potential breakouts thread + flags/pennants thread etc, and look how you could have entered into those trades without indicators.

https://www.aussiestockforums.com/forums/showthread.php?t=5351
https://www.aussiestockforums.com/forums/showthread.php?t=15158