Diary of a Financier

Reminder: Wait for confirmations

In Trading Desk on Wed 18 Jun 2014 at 10:57

“A chart is innocent until proven guilty.”

–Romeo Fayette (2014.06.18)

Just a reminder to myself regarding technical analysis: wait for confirmation before trading.

Chart patterns and indicators may portend a move, but I must await the actual breakout or breakdown before building or closing a full position.  Without confirmation, there is no conviction — and that goes doubly for a reversal within a larger trend (e.g. bull or bear market).

My multifactor, multidisciplined strategy tries to control for such false signals, but I can always strive to perfect my technical tools.

–Romeo

 

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