Abstract:Most traders who have never used chart analysis (and even some who have) are quite skeptical about this approach. This chapter explains how chart analysis is an effective approach. Trading success doe...Most traders who have never used chart analysis (and even some who have) are quite skeptical about this approach. This chapter explains how chart analysis is an effective approach. Trading success does not depend on being right more than half the time—or, for that matter, even half the time—as long as losses are rigidly controlled and profitable trades are permitted to run their course. Chart analysis can be made much more effective by requiring confirmation conditions for trade entry, rather than blindly following all technical signals. Successful chart analysis requires an ability to synthesize information drawn from charts over a range of time frames, thereby providing important context to any current chart pattern.. The chart analyst who is also a competent fundamental analyst would have a decided edge over the majority of traders basing their trading decisions solely on chart-oriented input. The failure of a chart signal can itself be a crucial signal, often a more reliable one than the signal itself.Read More
Publication Year: 2016
Publication Date: 2016-12-27
Language: en
Type: other
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot