Payday, Loans, finances

The two previous methods show a conspicuous concentration of entry techniques and an absence of ways to exit. Although it is valid to reverse positions when an opposite entry condition appears, Dunnigan spends a great effort in portfolio management’ and risk reward conditions that were linked to exits. By his own definition, his technique would be considered trap forecasting, taking a quick or calculated profit rather than letting the trend run its course (the latter was called continuous forecasting).
A fascinating calculation of risk evaluation and profit objectives is the Square-Root Theory. He strongly supported this method, thinking of it as the golden` key, and claiming support of numerous esoteric sources such as The journal of the American Statistical Association, The Analysts journal, and Econometrica. The theory claims that prices move in a square root relationship. For example, a market trading at 81 (or 9′) would move to 64 (8′) or 100(10′)~ either would be one unit up or down based on the square root. The rule also states that a price may move to a level that is a multiple of its square root. A similar concept can be found greatly expanded in the works of Gann.