Abstract
The installment strategy relies on both strong fundamental trends and reliable technical analysis. Among the many price signals traders need to see are both Western signals and Eastern (candlesticks). Beyond price, confirmation relies on strong volume, momentum and moving average indicators. While past price patterns are not reliable for estimating future trends, short-term signals often do anticipate reversals and improve entry and exit timing.
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Thomsett, M.C. (2018). Timing with Well-Selected Technical Signals. In: Options Installment Strategies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-99864-0_4
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DOI: https://doi.org/10.1007/978-3-319-99864-0_4
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