Under the heading [B]"Do Chart Patterns Work In The Forex Market?[/B]
In the 3rd paragraph, the author states “…[B]Look into moving averages, oscillators, candlesticks, and Bollinger bands. All of those indicators tell a story and once you know how to read the story, the message becomes clear.[/B]”
What does the author mean when he mentions that every indicators tell a story. I am assuming “story” in this context means trend direction.
I think he means something less specific than “trend direction” (though that will sometimes be so): I take it as meaning no more than “can give you some information, if you know how to interpret it”.
His books were written a while back so maybe not. If you read his system requirements for trading section, you can tell this was written in the 90’s. 1GB RAM for trading…oh man…
I think so, even though most of the retail Forex traders can’t understand all relevant patterns of market flow! Always, institutional Forex traders are 1st player, they can use initial opportunity of trend building, on the other hand, retail traders are always late, they open their positions in the mild point even ending stage of a trend! That’s the quality between retail and institutional Forex traders!
The author means that every indicator gives its own signal with its own characteristics. For example, in MACD oscillator a bullish crossover with its trigger line indicates a bull signal.
I am not an expert but I think that he means that trend direction could be found with some indicators but it depends on your experience and if you know how to extract the necessary information because honestly I find some indicators to be rather confusing than helpful. But GerhardtW’s comment seems pretty logic as well.