page 1 To identify trades that make financial sense, traders need to answer the following questions.
1 What is the direction of the bigger trend ?
2 When is a good time to buy or sell within this trend ?
3 What do smaller counter trend movements look like ?
4 How do I know when a counter trend move is ending ?
5 Where do I set my profit target and stop-loss ?
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page 2 TA uses price and indicators to identify trends and forecast price movements in a tradable security.
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page 4 Indicators are lagging like moving averages.
Or leading like momentum oscillators like MACD
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While one or two indicators can enhance analysis, three or more will often distort the true picture.
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page 10
1 Define the bigger trend.
2 Identify the smaller counter trend.
3.Estimate length of these counter trend moves.
4 Spot price action that signals the end of the counter trend.
5 Set Profit and stop loss levels to assess trade potential
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Art Hill's book only mentions only two indicators
MACD
ROC
No mention of RSI
.
Art Hill only uses price action.
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page 14 This may sound obvious, but chartist should not try to guess the top in an up trend nor a bottom in a down trend.
In other words , chartists should not second guess the market because these trends are there for a reason.
This reason may not be immediately clear, but it will likely manifest itself in the near future.
