Technical Indicator Wisdom 13
The maximum retracement is usually two-thirds.
Why Technical Analysis?
Let’s start by frightening you. Look at the following statement and ask yourself if any of it makes any sense…
… there are many categories of technical studies, including trend-following, fading and oscillators and include signals such as moving averages, convergence, divergence, directional movement indices, stochastic, commodity channel indices, and put-call ratios.
Now ignore the above and let’s bring a semblance of order in the process of analysis and technical triggers by keeping variables simple and logical.
I believe that technical studies are essential to trading, but used independently of fundamental ...