the hAnDbook of teChnICAL AnALySIS
Notice how the cycle‐tuned stochastic helps to corroborate the levels of support
and resistance by being overbought at resistance and oversold at support.
5.9 Trend Directionality
A unidirectional entry is a trade taken only in the direction of the existing trend,
be it to the upside or downside. A bidirectional entry is a trade taken in either di-
rection, depending on which way the breakout occurs. Figure 5.58 illustrates how
very short‐term or micro‐unidirectional entries are equivalent to a longer‐term or
macro‐bidirectional trading approach.
figure 5.57 Forecasting Potential Areas of Support and Resistance via Gaps on the
15‐min Chart of GLD.
Courtesy of Stockcharts.com
figure 5.58 Micro‐Unidirectionality as a Basis for Macro‐Bidirectionality.
