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Turning Patterns into Profits with Harmonic Trading (Collection) by Scott M. Carney, Buff Pelz Dormeier

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Chapter 6. RSI BAMM

As the bear markets of 2000 and 2008 demonstrated, the need for strategies that determine the overall bias is essential to develop a relative perspective on the position of any trade. For example, there is a significant difference between a long position, representing a continuation of the predominant bullish trend, as opposed to a brief correction within the overall downtrend. Despite the prevalence of distinct patterns that favor one side of the market or the other, the larger time frame and predominant trend will always dictate the extent of any move and the possibility for profit.

Technical Indicators

Larger trend considerations such as these were not the only new factors that helped determine the overall bias during ...

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