CHAPTER CHECKLIST

This chapter shared many tips on stock market behavior that you can use to improve your trading or investing. Below is a checklist that may help.

If price stalls near an old high or low, it could reverse. See (1) Timing the Exit: The 2B Rule.

Busted patterns slightly underperform regular chart patterns. See (2) Busted Patterns for Profit.

Stock performance improves if the busted direction aligns with the price trend shown by the industry and general market. See (2) Busted Patterns for Profit.

Fibonacci extensions are no more accurate than any other tool for determining where price might reverse. See (4) Myth: Fibonacci Extensions Work!

Divergence hints of a coming price turn. Look for divergence along the peaks in a rising price trend and along the valleys in a falling trend. See (5) Is Indicator Divergence a Dud?

On the RSI indicator, look for divergence when it signals ...

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