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Overview
"A serious, workmanlike book, a terrific introduction to technical analysis. Chen offers beginners a clear sample of methods and techniques from which a reader may choose in what to specialize."
—Dr. Alexander Elder, SpikeTrade.com, author of Trading for a Living
"Wiley's Essentials Series promises need-to-have fundamentals for professionals. With James Chen's new book, it now delivers some need-to-have technicals as well."
—Robert Prechter, Jr., founder/President of Elliott Wave International, Publisher of The Elliott Wave Theorist
"Trend trading technical analysis is the most important lesson for all investors and Essentials of Technical Analysis for Financial Markets is a great start. If you choose to ignore technical analysis, I guarantee a lifetime of very difficult money-making."
—Michael Covel, author of Trend Following and The Complete TurtleTrader
Think of this as financial market technical analysis 101
A valuable resource for traders at all skill levels, Essentials of Technical Analysis for Financial Markets equips you with the knowledge you need to analyze any major financial market.
This accessible guide to the art and science of technical analysis points you to a wealth of essential methods for identifying potentially high-probability trading opportunities. Focusing on the key information you'll need as a trader or investor, author and leading technical strategist James Chen helps you take on any financial market effectively, manage risk, and target profitability.
Take a look inside this indispensable book for world-class guidance on:
How you can pursue profit in the financial markets using technical analysis
Principles of price action analysis and trading
Charts—including bars, candlesticks, and point and figure
The key concept of trend
Support and resistance
Making the most of financial drawing tools, chart patterns, indicators, and other essential elements of technical analysis
Top technical trading strategies, risk control techniques, and money management concepts
Need the ultimate quick-start guide to technical analysis in the financial markets? Essentials of Technical Analysis for Financial Markets explains it all in a way that helps you hit the ground running and take your financial destiny into your own hands.
- Discover how technical analysis can dramatically improve your potential for success in trading and investing
- Understand the essential tools and methods of technical analysis to trade in any major financial market, including stocks, bonds, futures, and forex
- Explore the specific strategies technical traders use to make trading decisions and stack the odds in their own favor
Product Details
ISBN-13: | 9780470625569 |
---|---|
Publisher: | Wiley |
Publication date: | 04/01/2010 |
Sold by: | JOHN WILEY & SONS |
Format: | eBook |
Pages: | 304 |
File size: | 3 MB |
About the Author
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Table of Contents
Preface xiiiAcknowledgments xvii
1 Introduction to Technical Analysis: Pursuing Profit in the Financial Markets 1
What Is Technical Analysis? 2
Technical versus Fundamental 2
Methods 5
What to Expect 5
Summary 9
2 The Story of Technical Analysis: From the Japanese Rice Markets to Dow Theory to Automated Trading 11
The Beginning: Japanese Rice Markets 12
Dow Theory 14
Charting 17
Elliott Wave 18
W. D. Gann 20
Indicators 20
Trend Followers 22
Market Technicians Association 23
Technical Analysis Today 23
Summary 24
3 The Power of Technical Analysis: Principles of Price Action 27
Introduction to Price Action Concepts 28
Components of Price Action 29
Summary 32
4 The Basics of Technical Analysis: Bars, Candlesticks, Lines, and Point and Figure 33 Bars and Candlesticks 34
Line Charts 37
Point-and-Figure Charts 38
Summary 40
5 The Heart of Technical Analysis: Uptrends and Downtrends 41
Introduction to Trend 42
Effect of Time Frames on Trend Determination 50
Parallel Trend Channels 52
Trend Lines 54
Summary 55
6 The Soul of Technical Analysis: Support and Resistance 57
Introduction to Support and Resistance 58
Support Becomes Resistance Becomes Support 60
Summary 64
7 Primary Drawing Tools: Trend Lines, Trend Channels, and Horizontal Support and Resistance 65
Introduction to Drawing Tools 66
Static Support and Resistance 67
Dynamic Support and Resistance 72
Horizontal Support and Resistance Lines 78
Trend Lines 81
Parallel Trend Channels 87
Summary 89
8 Chart Patterns: Bar Shapes and Candlestick Formations 91
Introduction to Chart Patterns 91
Continuation Bar Patterns 93
Reversal Bar Patterns 102
Gaps 106
Candlestick Patterns 110
Single-Candle Patterns 111
Multiple-Candle Patterns 116
Summary 118
9 The World of Moving Averages 119
Introduction to Moving Averages 119
Moving Average Crossovers 123
Moving Averages as Support and Resistance 131
Summary 134
10 Key Technical Indicators and Oscillators 135
Introduction to Indicators and Oscillators 135
Key Indicators 139
Key Oscillators 148
Summary 159
11 Fibonacci and Elliott Wave 161
Fibonacci Theory and Methods 161
Elliott Wave Theory 170
Summary 175
12 Point-and-Figure Charting 177
Introduction to Point and Figure 177
Point-and-Figure Patterns 181
Point-and-Figure Price Targets 188
Summary 190
13 Volume 193
Introduction to Volume 193
On-Balance Volume 196
Tick Volume 198
Summary 199
14 Technical Trading Strategies: Practical Applications 201
Introduction to Technical Trading Strategies 202
Moving Average Crossovers 203
Breakout Trading 212
Trend Trading 224
Range Trading 238
Price-Oscillator Divergences 244
Oscillator Trading 249
Fibonacci Trading 254
Positive Expectancy 256
Summary 258
15 Risk Control and Money Management 261
Introduction to Risk Control and
Money Management 262
Stop-Losses 263
Reward:Risk Ratio 266
Maximum Allowable Loss 269
Multiple Fractional Positions 271
Diversification 273
Summary 273
Index 277