CHAPTER 12TREND INDICATORS
An indicator can be anything that forecasts a change in stock prices—anything at all as long as it is reliable and works consistently.
Indicators come in all shapes and sizes. Some garner attention through a combination of coincident accuracy and silliness. For a while, women’s skirt lengths appeared to rise and fall with the markets. (During periods of shortening hemlines, technicians got a great deal of amusement drawing trend lines on pictures illustrating the phenomenon.) A Super Bowl victory by an NFC team predicted an up market (a way-up market for a Steelers victory, says Susan), and an AFC victory led to a down market.
Philip Maymim of New York University has even developed a musical indicator. According to ...
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