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12 Simple Technical Indicators that Really Work

The Goal of This Book The purpose of Larson’s text is to help you understand the power of technical indicators and the right parameters. There are over 200 different types of technical indicators out there, and he shows you a list of the ones that are most commonly used. As you read, Larson asks that you keep this important point in mind. Basically, a parameter is a number. Think of the number in terms of your mother’s prized cake recipe. When she bakes that cake, what would happen if she leaves out one of the key ingredients, like the flour? Or if the recipe calls for half a cup of flour and she adds only a quarter-cup? It would make a big difference. What Larson describes to you here are the technical indicators that he’s found work well and consistently—regardless of whether the market is bullish or bearish—as long as you slightly modify the parameters. Figure 1.1 on page 3 shows an example of the indicators that you’ll learn about throughout this book.

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