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• Combining Patterns with Indicators by William Q. Smith

  ARTICLE SYNOPSIS ...Combining a technical indicator with another technical method can be the start of a viable trading system. Here's how to combine a technical indicator with a chart pattern to form one. Pattern recognition and trend-following can be combined to form a useful trading system. The particular pattern being reviewed is the triangle chart pattern, while the trend indicator is the 20-day exponential moving average (EMA). Both techniques can be used as a basis for an entry rule for trading opportunities. For an exit rule, we will rely on a trailing stop based on the parabolic indicator. With that in ...

AUTHOR: William Q. SmithDATE: NOV 1998SUBJECT: Trading Techniques