Many Technical Analysts actually find that when they know information about a particular company outside of what they are observing in the trading market, that it might allow emotion to get in the way of their decision making. The Technical Analyst is strict in their entry and exit rules.
My belief is that much like anything in life, too pure of an approach or belief that leans in strictly one direction can be restrictive and that a combination of both strategies will enhance your returns in the market over the long run whilst minimizing risk to the downside.
Given the wide range of readers of this magazine and this being the first issue in Canada, I plan to keep this article simple both to avoid confusion and as it tends to be my preferred method of analyzing charts. To help with our readers’ understanding I present to you what most of the charts that I will include in these articles will look like:
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