Multiple Signals Mean Enhanced Reliability
“Some of the impreciseness of charting can be offset with confirming signals. A simultaneous short- and long-term trend break is a much stronger signal than either one considered separately. The break of a head-and-shoulders neckline that corresponds to a channel support line is likely to receive much attention. Whenever there are multiple signals converging at, or near, a single point . . . that point gains significance. In chart analysis, the occurrence of multiple signals at one point can compensate for the quality of the interpretation.”
–Perry J. Kaufman, from Trading Systems and Methods (1998, John Wiley & Sons, New York).