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A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Strong and Weak Confirmation

Another way that signals combine is via strong confirmation results. Confirmation can be set up in this way with any combination of signals, including Western and Eastern technical signals, volume, moving averages, and momentum oscillators.

For example, in Figure 7.2, price drops below support and immediately gaps even lower. This is a troubling signal, often forecasting a fast reversal back into range, but the gap needs to be confirmed.

Image

Figure 7.2 Strong confirmation—gaps and spikes (Chart courtesy of StockCharts.com)

Two strong forms of confirmation appear immediately after the initial gap. First is a volume ...

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Publisher Resources

ISBN: 9780134190662Purchase book