Another Entry Signal to Consider
My trading background is primarily as a technician. In the growth methodology that I was taught, technical strength (as in rallying to new highs) was the primary consideration when making a stock purchase. Over the past couple of years, as I've begun employing other fundamental and technical analysis tools, I've changed my view of where the most appropriate buy points occur.
For example, I now scan for 200-day support as a possible entry-point signal, something I never did when I was primarily focused on small- and mid-cap growth trading. For large-caps with a longer potential holding period, it often makes sense to enter when the stock sees support at that longer-term moving average....392 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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