Profitable Candlestick Trading by Stephen W. Bigalow

Author:Stephen W. Bigalow
Language: eng
Format: epub
ISBN: 9781118005804
Publisher: Wiley
Published: 2011-02-17T16:00:00+00:00

Utilize the Best Tools Available

An important confirmation indicator of the Candlestick signals is the stochastics. Again, referring back to probabilities, the assumption has to be made that existing technical indicators have to have statistical credibility. Otherwise, they would not be a part of today’s technical universe. Track records have to produce noticeable results through the years, or they would not be used today. Combining a well-tested confirmation indicator with a well-refined reversal system creates a high-probability combination. The function of stochastics is to provide a valuable input into the investment decision-making process. It compels the investor to buy in the low-risk (oversold) areas and sell in the high-risk (overbought) areas. This function is magnified due to the nature of the signals. A buy signal does not have the credibility in an overbought condition that it would have in an oversold condition. Conversely, a sell signal, presenting itself at the end of a downtrend, does not have the same importance as it has at the top of an uptrend.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.