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Using Technical Analysis to Find a Low Risk Entry Point

In this video the we will explore using technical analysis to find a low risk entry point for a stock or call option trade.

The daily price chart below displays the daily price movement for Travelers stock. We can see from the daily price chart below that TRV stock is in a strong price up trend as the stock price moves from ‘lower left’ to ‘upper right’ on the price chart.

The question becomes is it too late to participate in the strong TRV rally?

We like to use a system with clearly defined rules that identify ‘Buy Zones’. Buy Zones allow us to participate in a strong rally when the stock price retraces giving a low risk entry point.

In the example below there were 8 ‘Buy Zone’ entries (Circled) that gave us low risk entries as TRV stock rallied from the buy zone. Learn how to identify these ‘Buy Zones’ for finding low risk entries.

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