lowtrade

[lowtrade]

TA indicators should be usde to aid with decision making. Many times you can find stocks with no chart pattern and positive TA indicators signaling entry.

Your question is a personal thing. I trade on plans and would not buy only because of TA; because it has no target goal. But many traders don't trade my way and use TA signals alone.

Chart patterns are the reason I buy. TA supports the reason. But buying before any chart action happens always increases risk. If one buys on TA alone, selling on any weakness becomes more important. If trading a chart pattern you can except that red day or two; because you know the pattern target still remains historically reliable.

It's a risk reward thing traders need to choose based on their personal trading style and success rate. With TA alone you can rely it will move up. But how far is the question. Moves without chart patterns often reverse on a dime. I just don't like telling anyone to trade early. (BEFORE breakout). It decreases the odds for success.