How to buy stocks long term using technical analysis

You have decided to put a foot in the stirrup on the Best Trading Mentor. But something worries you.

You are afraid of doing wrong. You are afraid of seeing your capital decrease significantly. You fear that the financial markets will take you the wrong way.

You place too much importance on the price manipulations of the big invisible hands. Don’t be surprised if you can’t build a stock market portfolio that will enrich you over the long term.

In reality, you don’t know how to buy stocks for the long term. There are different methods of doing this. Some are random. Others involve sticking to milestones with iron discipline.

If I were you, I opt for the second option.

Most of you are looking for a method that puts you at ease psychologically. It’s not false.

Using technical analysis in your method of investing can meet your expectations.

You’re eager to learn how best to use this decision support tool to find the right long-term actions.

Before giving the answers you desire, I would like to clear things up on technical analysis. By doing my own investigation, many beginners have fallen into the trap that this is the miracle solution. Result, it is the frustration which gains you.

 

Technical analysis is not the safe haven for all your problems

When we talk about safe haven, you often refer to gold. But that is not the subject of the article in question. You understand me.

What attracts you to technical analysis is that you don’t need any special skills unlike fundamental analysis. Although, the latter can be learned independently.

You see this tool as a shortcut to choosing your long-term actions. Are in tune with Japanese candlesticks, chart patterns and technical indicators.

Tell yourself that you have a solid background to take advantage of it. Except you’re not the only one using it. It popularized on the web.

You forget that the financial markets have evolved enormously. They are more liquid. There are more and more investors. Electronic listing significantly encourages speculation and price manipulation.

For financial markets to work, it is essential to have winners and losers.

Technical analysis is put to the test. It offers random signals. You may have to deal with false breakouts of resistance or support. You are not going to find beautiful chart figures every time. Excessive use of technical indicators makes you more hesitant.

Basically, it does not solve another concern, the control of your emotions.

If you want to get serious, this warning message won’t hurt.

Because it will prevent you from finding yourself in an uncomfortable emotional state in the near future.

Now. I’m going to show you how to buy stocks long term with technical analysis.

 

Analyze the stock in monthly units

You have been influenced by the best technical analysis sites and forums on the stock market.

At the end of the day, you often tend to look at a stock’s chart over timeframes ranging from 4 hours to weekly. Which is not a mistake because of the specificities of the stock market.

However, have you thought about analyzing it in monthly units?

You’re going to tell me that’s corny. It is not a suitable unit of time for purchases. On this point, I agree, because you are not going to wait until the next month to act.

Yet you are looking for the best stocks over the long term. The monthly unit will allow you to have a better overview . Then, it will give you the bases to optimize your entry points on lower time units.

Buy Weinstein Phase 2 Long-Term Stock

You want to take as little risk as possible to buy long-term stocks with technical analysis.

You must select stocks that are in Weinstein phase 2. Why ?

They are in an uptrend after having put an end to the various bearish technical signals. The 30-week moving average follows the rise in prices. They outperform their benchmark index.

Weinstein’s phase 2 is the symbol of a bull market. Icing on the cake, it can last a long time.

To learn more about the functioning and use of Weinstein’s phases, you can read ” Weinstein’s Phases: Understand to invest well in the stock market “.

You want to catch the right wagon. You need to be on the starting blocks at the start of Weinstein Stage 2 to benefit from the most powerful move. If you missed it, don’t worry, it’s not too late yet.

How to proceed with a better probability of success.

Play the breakout of the downtrend line or the exit of a rising chart pattern

The break of a downtrend line . It seems obvious to me at a glance.

You see it on your charts. You have met the conditions to buy the stock. Yet, you still hesitate thinking that it is a misleading signal for various reasons.

You are not necessarily wrong. Theory is not synonymous with certainty.

Sometimes, market behavior can give the illusion that all is well, when in reality it is red and black.

You want to eliminate your doubts about this type of technical setup. The best thing to do is to play the breakout or overshoot of the penultimate point of contact .

Another alternative offered to you. You also have the option of playing the exit of a major chart pattern like the reverse head shoulder, triangles, rectangle, double bottom, etc.

Some chart patterns require adding an additional resistance line to definitively confirm a real bullish signal.

Read More: The Best Course To Learn About The Stock Market