Wrap It Up
As I’ve stated many times in the past, I think that a blend of fundamental analysis with technical analysis is the best way to take advantage of price movements and limit downside risk both when deciding to enter a stock and when trying to determine an exit point. I’m a huge advocate of always having targets both to the upside (when to take profits) and to the downside (when to pull the plug on a loss). A great analogy is that you wouldn’t go to a nice restaurant and order a meal without first considering the price, so why would you enter a stock and give the market a blank check in terms of how much you may lose on a given trade. Luckily for us modern traders we have stop limit sell orders to be able to protect gains and limit losses! I hope that you all enjoyed this article and learned a thing or two about using charts to one’s advantage. Readers are encouraged to follow me on twitter @dyro01676 where I am quite active posting charts / commentary. Feel free to drop me a line as I am a sponge and always open to hearing new ideas to consider. You can also find me on www.setyourstop.ca - Thanks a ton for your time!
184