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

thE hAnDbook of tEchnicAL AnALySiS

Figure  9.82 Price Confirmation of Reverse Bullish Divergence via a Moving Average
Breakout.

Figure 9.83 Price Confirmation of Reverse Bullish (Double) Divergence via a Triangle
Formation Breakout with Three Non‐Correlated Indicators.

Figures 9.84 to 9.86 show three different price confirmations applied on the
same bar chart. This illustrates the point that the choice of price barrier for con-
firmation is essentially arbitrary. It is therefore best to choose a significantly clear
and obvious price barrier for a more reliable entry or forecast.