Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition
by Michael N. Kahn
The Trend Is at Its End
This is one of the hardest tasks in the investment world. How can the average investor pick tops and bottoms?
This cannot always be done. What can be done is to use technical tools to find reversal signals, trendline breaks, and penetration of support/resistance levels, and then build a case for continuing to hold the stock or starting to take some money off the table by selling.
There are a few subjective measures to be applied:
Are you satisfied with the profit made already? In other words, has the stock or market reached your price objective? There is an old adage that states, “Bulls make money, bears make money, pigs get killed.” Do not let greed displace good analysis.
Has the stock or market simply stopped rising? ...
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