Your stock entry/exit clues and indicators?

[gamefisherman]

Thank you for your great responses to our post 5 trading rules..........

Further to this we would greatly appreciate some comments on the following:

1. What clues and indicators do you require for a stock entry and exit?

2. Is support and resistance critical, in other words do you wait for the stock to bottom out at support then buy? In other words do you place an order in the line and wait for the price to come down to the level of support then have the order executed or do you buy at a price today assuming it has momentum and an upward trend?

3. How do you determine what the support price and resistance price is for a particular stock???



We really appreciate your help..............So much to learn............

 

[supermatt]

Re: What clues and indicators do you look for a stock entry and exit?

For me I dont use indicators
I generally look on weekly charts to determine overall direction as I find daily charts with stocks are a little hard to read with all the gaps everywhere.

I look for candlestick patterns at key support or resistance levels If I identify a certain candlestick pattern I wait for confirmation then I would enter a trade.
Exit is the same. Look for a s or r level and candlestick patterns to give clues on when a stock may reverse.

To identify what key levels are important for anything its best to zoom out to a higher timeframe. Often you will notice multiple areas where price has touched in the past and will often become important in the future as people would have their eyes on the same levels as you do. If its not obvious then price isnt likely to react at those levels.

If something catches my eye on the weekly I will make note of it then zoom into the daily chart for entry points.

Also I read news reports and a few daily or weekly outlook articles to see what could be decent buying opportunities if the right signals come along on the charts.

Everyone has their own way and that is mine I like to keep it simple