When it comes to technical analysis many traders especially beginners feel that the more complicated or fancy the technical analysis tool the better or more reliable it is likely to be. Nothing could be further from the truth. Even the simplest and most basic technical analysis tools if applied and used correctly can be extremely powerful and effective. The trick, however, is to use them in a leading rather than in a lagging fashion and often more pragmatically than what is dictated by traditional technical analysis, in order to bring the predictive power of the tool to the fore.
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