A Handbook of Technical Analysis: The Practitioner's Comprehensive Guide to Technical Analysis

CHAPTER 27

Integrated Technical Analysis

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

• Differentiate between price-static, price-dynamic, time, and price-time-based forecasts
• Identify important and significant bullish and bearish clustering and window oscillator confluences
• Recognize multicollinearity on the charts
• Employ multiple timeframe analysis in forecasting of potential price behavior
• Integrate risk and money management components for better forecasts
• Combine price and broad market indicators to identify potential market reversals

Technical analysis works best when it is applied in a timely and effective manner. Effective application comprises of looking for areas of supportive and resistive confluences or clusters, which tend to provide the strongest and most reliable barriers to price. Such clustering may be purely in the price domain, but learning to identify clustering in both the time and price-time domains will greatly improve the accuracy and reliability of any forecast. In this chapter, we shall discuss all three forms of clustering and apply technical analysis in the most efficacious manner, that is, via an integrated approach.

27.1 THE INTEGRATED COMPONENTS OF TECHNICAL ANALYSIS

Integrated technical analysis is the art and science of locating significantly clear and obvious price levels or zones comprising of a concentration of supportive or resistive indications. Such concentrations are usually referred to as bullish or bearish ...