The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

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Trend Analysis


5.12 Chapter Summary


In this chapter, we dealt with issues concerning the definition and identification
of a trend. We have also discussed various powerful trend indicators that helped
identify the early onset of a trend. The practitioner is advised to pay particular
attention to the 16 characteristics that may significantly impact the future of price
action and potential strength of a trend.

Chapter 5 Review Questions



  1. What is a trend?

  2. Explain the disadvantages of defining market and price action.

  3. What are the early indications of a potential reversal?

  4. Briefly describe the 12 ways in which price action may be understood.

  5. How can channel analysis help pinpoint potential reversals and continuations?

  6. What are the factors that impact trendline reliability?

  7. Explain the advantages of using proportional sizing.

  8. In what ways are price‐based filters more useful than time and algorithmic filters?


referenCes


Covel, Michael W. 2009. Trend Following. Upper Saddle River, NJ: FT Press.
DeMark, Thomas. 1994. The New Science of Technical Analysis. New York: John Wiley
and Sons.
Hill, John, George Pruitt, and Lundy Hill. 2000. The Ultimate Trading Guide. New York:
John Wiley and Sons.
Sperandeo, Victor. 1991. Trader Vic: Methods of a Wall Street Master. New York: John
Wiley and Sons.
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