In the realm of short-term trading, algorithms and bots dominate, rendering traditional reasoning less effective. However, the landscape of long-term investing remains grounded in fundamentals, demanding a comprehensive understanding of various aspects. Here are some key strategies that you can use in combination to have some predictive capability.
Classical Technical Analysis:
- Utilize chart patterns, support and resistance levels, trendlines, and technical indicators to make trading decisions.
Cycles Analysis (Bressert):
- Incorporate Bressert's cycles analysis to identify recurring patterns and trends in the market, considering time as a crucial factor.
Sentiment Analysis:
- Analyze market sentiment through various indicators, news, and social media to gauge the overall mood of traders and investors.
Fibonacci Analysis:
- Apply Fibonacci retracement and extension levels to identify potential reversal points and price targets in the market.
Inter-market Analysis:
- Study the relationships between different asset classes to gain insights into potential market movements.
Weinstein Stage Analysis:
- Use Weinstein's stage analysis to categorize stocks into stages, helping to identify the current market trend and potential turning points.
Ratio Charts:
- Create and analyze ratio charts to compare the performance of different assets or markets, helping to identify relative strength or weakness.
False Breakouts and Undercut Lows:
- Watch for false breakout signals and undercut lows as potential reversal or trend confirmation signals.
Long Cycles (Kondratieff Wave, Debt/Real Estate Cycle, Commodities Cycle, Gold Cycle):
- Consider long cycles such as the Kondratieff wave, debt/real estate cycle, commodities cycle, and gold cycle to anticipate major market trends and turning points.
Combined Approach (Cycles Analysis + Classical Technical Analysis):
- Recognize the synergy between cycles analysis and classical technical analysis, leveraging the strengths of both to enhance market predictions.
Unique Tools Developed from Experience:
- Utilize any unique tools developed from your experience, applying them as additional resources to refine trading strategies.
You can reduce this list for successful long-term investing encompass applying Technical Analysis (TA) on daily and higher timeframes, staying attuned to prevailing market conditions, and utilizing ratio charts. These strategic elements collectively form a robust foundation for navigating the complexities of long-term investment endeavors.