5Mes·

Hi Guys,


once again something to brainstorm about. Some people probably find it difficult to make decisions about various share purchases. Maybe sometimes it's not so important when you buy a stock that you find interesting, but when you don't buy it, when not to buy it. Quasi rational hedging of Fomo purchases. Assuming that there is always a growth and investment thesis and factoring out a few bankruptcies, I make the following 2 assertions. There will definitely be pros and cons here:


Assertion 1:


The 200 DMA is the approximate fair value of a stock. It acts like a magnet, stocks that run far above or below it tend to return to the line sooner or later. (shown in the screenshot in gold)


A share that is well above the 200 level becomes unattractive to buy (although you could continue to hold it). (You could still hold it, however, but a "hold" is not included here). The assertion would thus encourage hasty purchases of e.g. $CMG (-0,82%)
$DECK (+2,22%)
$UBER (-0,14%)
$PSTG (+2,39%)
$CRWD (+2,85%)
$AMD (-0,35%)
$AXON (+1,43%) that are on my watchlist. What would I do in the case of Chipotle? I would wait until the stock returns to the 200 DMA.


Assertion 2:


Good times to buy are ALWAYS when the Weekly RSI is below 55 (preferably even below 50) and at the same time still below the average line (marked red in the screenshot)


You almost never hit the low when buying anyway. Nevertheless, you would buy your desired stocks close to the lows with a clear conscience and follow a clear line.


Now one or two people might say "but that's obvious". Then I say, it's not that clear. You only have to look at the Getquin timeline. Stocks with an RSI above 60 or 70 and well above the 200s are regularly requested here and considered good buys.


What do you think?

Does anyone act similarly?

Are the claims bullshit?

attachment
11
14 Commenti

immagine del profilo
Sounds interesting, but I would never rely purely on technical analysis - even if it can be helpful in finding a suitable entry point.
However, you should never rely purely on it and always pay attention to macroeconomic factors as well. Otherwise I think you can quickly burn your fingers.
4
Mostra la risposta
immagine del profilo
In the case of indices such as the S&P 500, prices around (or well below) the EMA 200 (or EMA 50 in the weekly chart) are always clear opportunities for me to make larger individual purchases. I also like to buy when the EMAs are tested from above.
Accordingly, when prices are well above the EMAs, I generally only buy via my regular savings plans and even reduce the amounts if necessary.

This also applies to individual stocks that I am absolutely convinced of as a long-term investment, such as $BRK.B.

The last purchases made according to this scheme have performed very well so far.

I have not yet paid attention to the RSI, but it is definitely worth considering 👍
1
Visualizza tutti 3 ulteriori risposte
immagine del profilo
Hmmm...I'm not getting along with your RSI right now...do you have any settings other than the default from Tradingview? 🤔
Visualizza tutti 7 ulteriori risposte
Partecipa alla conversazione