The Ultimate Technical Analysis Handbook - Tradingportalen.com

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Chapter 9 —Pick Your Poison... and Your Protective Stops 4. Five-Period Simple Moving Average Here’s another observation in my ongoing analysis of tradable moves: I notice that when a market trends, its closes tend to stay above a fiveperiod simple moving average of the close. And as you can see, the levels identified in Figure 81 are significantly tighter than the levels in any of the preceding price charts. So as not to miss out on a developing trend, I often set a protective stop a few ticks above or below the high of the first bar that successfully penetrates the five-period moving average on a closing basis. Figure 81 My 2 cents overall: As a result of many years in search of the perfect protectivestop technique, I have discovered that there isn’t one. So when deciding which stopping technique to employ, I suggest you choose one that matches your own trading style best. My best advice: If there is a single gem I can offer in regard to using protective stops, it is this: If you’re confident about a trade, give it plenty of breathing room. If you’re not, then keep your protective stops tight. [July 2006] The Ultimate Technical Analysis Handbook — © 2009 Elliott Wave International This ebook includes handpicked lessons from more than 200 pages of EWI’s comprehensive Trader’s Classroom Collection of eBooks. Learn more here: http://www.elliottwave.com/wave/ClubTCC 52
Chapter 2 — How To Confirm You Have the Right Wave Count EWI eBook The Ultimate Technical Analysis Handbook Excerpts from the Trader’s Classroom Collection of eBooks Volumes 1-4 By Jeffrey Kennedy, Chief Commodities Analyst, Elliott Wave International © 2009 Elliott Wave International Published by New Classics Library For information, address the publishers: New Classics Library Post Office Box 1618 Gainesville, Georgia 30503 US www.elliottwave.com The Ultimate Technical Analysis Handbook — © 2009 Elliott Wave International This ebook includes handpicked lessons from more than 200 pages of EWI’s comprehensive Trader’s Classroom Collection of eBooks. Learn more here: http://www.elliottwave.com/wave/ClubTCC 53
Page 1 and 2: The U L T I M A T E Technical Analy
Page 3 and 4: Chapter 1 — How the Wave Principl
Page 5 and 6: Chapter 1 — How the Wave Principl
Page 7 and 8: Chapter 2 — How To Confirm You Ha
Page 9 and 10: Chapter 3 — How To Integrate Tech
Page 19 and 20: Chapter 4 — Origins and Applicati
Page 27 and 28: Chapter 5 —How To Apply Fibonacci
Page 33 and 34: Chapter 6 —How To Draw and Use Tr
Page 45 and 46: Chapter 7 — Time Divergence: An O
Page 47 and 48: Chapter 8 — Head and Shoulders: A
Page 49 and 50: Chapter 8 —Head and Shoulders: An
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