June 2011
Intermediate to advanced
240 pages
6h 42m
English
Content preview from Trading with Charts for Absolute Return
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
ASCENDING AND DESCENDING TREND LINES
Trend lines are the most followed trading tools followed by chartists. As with any other pattern recognition trading tool, investors never know in advance when trend lines will develop. This is why the charts of the desired products must be watched very closely every day.
Basic Features
To get rolling with this section, the discussion will first cover some basic features of applying ascending and descending trend lines to charts. Peaks and valleys—as mentioned—are the most important elements of chart analysis for identifying trend moves on charts and defining trend reversals as breakouts of trend lines.
Consecutive Peaks and Valleys
In an uptrend, a straight line is drawn upward with rising reaction valleys. It needs the third low to confirm the validity of the trend line. This general rule is shown in Figure 4.3.
In a downtrend, a straight line is drawn downward with falling reaction peaks. It needs a third peak to confirm the validity of the trend line (see Figure 4.4).
Nonconsecutive Peaks and Valleys
A trend line in an uptrend is a straight line drawn with rising reaction valleys. It ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.