Investor’s Library: Fundamental Analysis, Technical Analysis, and Income Investing (Collection)

Chapter 10 Technical Indicators

In all the preceding chapters, candlestick signs, moves, and patterns on actual stock charts were explained. Throughout, the concept of confirmation has been emphasized as essential to the proper reading of candlesticks. Among the many forms of confirmation, traditional technical indicators are the best tools you can use.

The Value of Confirmation

For the purpose of using candlesticks as timing tools, perhaps the most important technical concept is confirmation. The idea is that no single indicator is reliable, on its own, to clearly and specifically tell you when to enter or exit a position.

No combination of indicators provides a guarantee, either. However, when you see an initial indicator and a confirming ...