Technical Analysis, Schwager

Technical Analysis, Schwager
FAILED SIGNAL = MOST RELIABLE OF ALL SIGNALS
go short aft failed upside breakout
false trend line break
filled gap (C below C of d prior to gap)
esp if wide-ranging d
rtn to spike hi/low
close below low of wide-ranging d
counter-to-anticipated pennant/flag
penetration of double top/bottom
Measured move => subseq dPrice = last dPrice + reactn low
Trendline = freq must b redrawn
double top/bottom = confirmed when rel low bw violated
breakout fm trading range
long + narrow best
wait for confirmation eg min% or min # of ds
support + resistance => zones, not precise pts
gaps
breakaway ax trading range, not filled in few ds **
= very reliable sig
xhaustion = aft long move
island top/bottom
wide-ranging d = volatility ratio > k eg 2
VR = true range / true range of past n ds
triangles/flags/pennants = continuation pttns
put stop js beneath/above formation
esp sig if near top of xtended trading range (bullish)
thrust d = C > H[1]
1 not sig, b several (not nec consec) are
run d = H > max hi(last 5) & L < min lo(next 5)
reversal d = new H then C < L[1] = stricter signal
spikes
only meaningful aft strong move

Technical Analysis, Schwager
Never add to losing position
Never add if stop wl lead to loss for position
Never add > than th base (initial) position size
Pyramiding
pennants/flags
dip below ma in uptrend
reaction count reaches eg 4 = ++ qd HL <= HL[1], reset
to 0 if new H made