Chapter 10: Anticipating Price Action
What we will cover in this chapter
- In order to participate effectively we cannot afford to be reactive, we need to develop a methodology for anticipating in what way price action is likely to evolve.
- A consistent trend is the most reliable continuation pattern. “A consistent trend is a trend in motion.”
- Commonality – no financial instrument exists in a vacuum, therefore the performance of one instrument can give us clues to how related instruments will perform.
- Relative strength and the importance of leadership – leaders lead for a reason. Leaders tend to lead in both directions.
- Banking sector leadership – as liquidity providers banks should respond well in any environment where demand for ...