Chapter 14

Three Powerful Price Patterns: Part III

First published: 02 January 2012

Summary

The basis of three powerful price patterns is the moving average channel (MAC).The CMC (Cuban Missile Crisis) pattern occurs after a market has triggered a MAC buy or sell signal. Two consecutive price bars above the moving average (MA) of the high triggers a buy while two consecutive price bars below the MA of the low triggers a sell. Once there has been a trigger in a given direction, we consider the trend of the market to be consistent with the direction of the trigger. This chapter defines the CMC pattern with concise specific examples and definitions. Practical application of the method was stressed with specific examples.

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