Combination Tools

No beginner’s book on any subject would be complete without exposing the reader to some of the more advanced concepts of the subject. In technical analysis, some indicators are designed to cover more than one analysis area. Most of them require the user to have a complete comfort, if not fluency, in the tenets of technical analysis, so Table 28.2 is presented more as an advertisement for advanced learning.

Table 28.2. Combination Tools
Price and time

  • Market profile (shows time spent at each price during the day; forms a value area on the chart).

  • MESA (maximum entropy spectral analysis; finds cycles in the data and projects them forward).

Price and volume

  • Money flow (price times volume summed per trade; used as a supply/demand indicator). ...

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