Study Guide for Come Into My Trading Room - Forex Factory

110 ANSWERS AND RATING SCALES
up and create a bullish divergence, it will confirm the strength of the
downtrend—stay short.
Rating Yourself
Below 58 Poor. Computerized indicators are powerful tools, offering
important insights into crowd behavior. You need to understand them
better before moving on to trading. Please return to the recommended
reading materials, study them, and retake this test a few days
later, before proceeding to the rest of the Study Guide.
58–70 Fairly good. You have grasped the key concepts of computerized
technical analysis. Now decide whether your current level of understanding
is sufficient for your style of trading or whether you should
return to the recommended materials, review them, and retake the
test before proceeding.
71–86 Excellent. You have a handle on computerized technical analysis.
Now that you know how to read the markets, it is time to move
on and test your knowledge of trading.
Required Reading
Elder, Alexander. Come into My Trading Room (New York: John Wiley
& Sons, 2002). See “Indicators—Five Bullets to a Clip” in Chapter 5
(pages 80–117).
Additional Reading
Elder, Alexander. Trading for a Living (New York: John Wiley & Sons,
1993). See “Computerized Technical Analysis” (pages 115–166).
LeBeau, Charles, and David W. Lucas. Technical Traders Guide to Computer
Analysis of the Futures Market (New York: McGraw-Hill, 1991).
Murphy, John J. Technical Analysis of the Financial Markets (Englewood
Cliffs, NJ: Prentice-Hall, 1999).