Chapter 14
Using Technical Indicators Alongside Bullish-Trending Candlestick Patterns
IN THIS CHAPTER
Combining trend lines with bullish-trending candlestick patterns
Making profitable trades with moving averages and bullish-trending candlestick patterns
You can combine candlestick patterns effectively with a variety of technical indicators to produce information that helps you decide when to put on and get out of trades. Like candlestick patterns, many technical indicators tell you when a trend is about to reverse, but several others can let you know that a prevailing trend continues. These indicators are powerful weapons that can add to the versatility of your trading arsenal.
If you understand how to use technical indicators in tandem with bullish-trending candlestick patterns, it’s easier to spot situations in which buying to enter a long position is a wise move. You can also use technical indicators to confirm market or individual security predictions that you’ve made based on candlestick patterns.
I cover all those topics and more in this chapter, focusing my discussion on two of the most common technical indicators: trend lines and moving averages. Both indicators are covered in Chapter 11. If you have a basic understanding of how these indicators are created and how they ...
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