CHAPTER 13

More on Technical Triggers

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 ...

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