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Technical Analysis For Dummies, 4th Edition
book

Technical Analysis For Dummies, 4th Edition

by Barbara Rockefeller
October 2019
Beginner content levelBeginner
384 pages
10h 46m
English
For Dummies
Content preview from Technical Analysis For Dummies, 4th Edition

Chapter 7

Special Bars — An Early Warning System

IN THIS CHAPTER

Bullet Keying in on market psychology in simple bar combinations

Bullet Comprehending common and uncommon bars

Bullet Getting the lowdown on gaps

Bullet Understanding the significance of the high-low range

The price bar is the basic building block of technical analysis. Bar configurations come in endless combinations and permutations, and you can’t possibly memorize them all. But knowing about the special bars is useful because they can be powerful predictors — and everyone knows it.

Special bars are a small series of two to five bars — called combinations or configurations — that stand out on a chart. You can see them immediately, and so can everyone else. Most special bars and configurations are either trend-confirmation or trend-reversal patterns, but even when they’re ambiguous, you need to sit up and take notice. This chapter takes a closer look at these special bars and explains what you need to know.

Finding Clues to Trader Sentiment

You use price bar combinations to determine whether your security is starting a trend, staying on a trend, ...

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Publisher Resources

ISBN: 9781119596554Purchase book