Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

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Penguin, 1999 - Business & Economics - 542 pages
63 Reviews
This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.
 

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Contents

Philosophy or Rationale
2
Flexibility and Adaptability of Technical
7
Less Reliance on Market Averages and Indicators
14
Universal Principles
21
The Use of Closing Prices and the Presence
30
Chart Construction
35
Volume
41
Basic Concepts of Trend
47
Measuring Techniques
286
PF Technical Indicators
292
Basic Candlesticks
299
Filtered Candle Patterns
306
Elliott Wave Theory
319
Connection Between Elliott Wave and
324
The Rule of Alternation
331
Fibonacci Time Targets
338

Support and Resistance
55
Trendlines
65
The Fan Principle
74
The Channel Line
80
Speed Resistance Lines
87
Price Gaps
94
Price Patterns
100
The Importance of Volume
107
Complex Head and Shoulders
113
Variations from the Ideal Pattern
121
Conclusion
128
Continuation Patterns
129
The Ascending Triangle
136
The Wedge Formation
146
The Continuation Head and Shoulders Pattern J 53
153
Interpretation of Volume for All Markets
162
Interpretation of Open Interest in Futures
169
Summary of Volume and Open Interest Rules
174
Long Term Charts Not Intended for Trading
188
Moving Averages
195
Moving Average Envelopes
207
Moving Averages Applied to Long Term
213
To Optimize or Not
220
Oscillator Usage in Conjunction with Trend
226
Measuring Rate of Change ROC
234
Using the 70 and 30 Lines to Generate Signals
245
The Importance of Trend
251
The Principle of Contrary Opinion in Futures
257
Point and Figure Charting
265
The Horizontal Count
274
Box Reversal Point and Figure Charting
277
Cycles
344
How Cyclic Concepts Help Explain Charting
355
Combining Cycle Lengths
361
Seasonal Cycles
369
Cycle Reading and Software
375
Welles Wilders Parabolic and Directional Movement
381
Pros and Cons of System Trading
387
Money Management and Trading
393
Money Management
394
Trading Tactics
400
The Use of Intraday Pivot Points
407
The Link Between Commodities and the Dollar
419
Stock Sectors and Industry Groups
420
Relative Strength and Individual Stocks
426
Stock Market Indicators
433
McClellan Summation Index
439
Upside Versus Downside Volume
443
Comparing Market Averages
449
How to Coordinate Technical and Fundamental
455
Advanced Technical Indicators
463
Starc Bands and Keltner Channels
469
Market Profile
475
Range Development and Profile Patterns
484
Conclusion
490
Turn Your Idea into a Set of Objective
497
Continuous Futures Contracts
505
Glossary
511
Selected Bibliography
523
Index
531
226
533
Copyright

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Page iii - Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends. The term "market action" includes the three principal sources of information available to the technician — price, volume, and open interest.

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About the author (1999)

David Dyergrew up in a coastal town in NSW, Australia, and graduated as dux of his high school in 1984. After commencing a degree in medicine and surgery at the University of Sydney, he soon decided it was not for him.

David went on to train as a ship's officer at the Australian Maritime College, travelling Australia and the world in a wide range of merchant ships. He graduated from the college with distinction and was awarded a number of prizes, including the Company of Master Mariners Award for highest overall achievement in the course. He then returned to the University of Sydney to complete a combined degree in Arts and Law. David was awarded the Frank Albert Prize for first place in Music I, High Distinctions in all English courses and First Class Honours in Law. From the mid-1990s until early 2000s David worked as a litigation lawyer in Sydney, and then in London at a legal practice whose parent firm represented the Titanic's owners back in 1912. In 2002 David returned to Australia and obtained a Diploma in Education from the University of New England, and commenced teaching English at Kambala, a school for girls in Sydney's eastern suburbs.

David has had a life-long obsession with the Titanic and has become an expert on the subject. In 2009 he was awarded a Commonwealth Government scholarship to write The Midni

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