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

the hAnDbook of teChnICAl AnAlysIs

fIgure 1.11 Moving Average Analysis on the Same Chart.
Source: MetaTrader 4

fIgure 1.12 Chart Pattern Analysis on the Same Chart.
Source: MetaTrader 4

In Figure 1.11, moving average analysis is now employed to track the same flow
of price action and to provide potential points of entry as the market rises and falls.
Figure 1.12 depicts the application of chart pattern analysis to track and fore-
cast the shorter‐term bullish and bearish movements in price.
Figure 1.13 is an example of applying two forms of technical analysis, that is,
linear regression analysis and divergence analysis to track and forecast potential
market tops and bottoms. Notice that the market top coincided perfectly with the
upper band of the linear regression line, with an early bearish signal seen in the form
of standard bearish divergence on the commodity channel index (CCI) indicator.