The Importance Of Failed Signals

  • July 9, 2001
  • TradingMarkets Editors

A failed signal is among the most reliable of all chart signals. When a
market fails to follow through in the direction of a chart signal, it very
strongly suggests the possibility of a significant move in the opposite
direction.

–Jack D. Schwager, from Schwager on Futures: Technical Analysis
(1996, John Wiley & Sons, New York).