Charting Made Easy E-Book

John J. Murphy

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Trading Series
• Sprache: Englisch
• Veröffentlichungsjahr: 2012

Seitenzahl: 45

Beschreibung

Here is a treasure trove of easy to use tools for mapping your course through today's market. Whether you're using online charts or a professional charting software program, these techniques from master technician John Murphy can increase your trading success. "One of the greatest benefits of technical analysis is its applicability to any and all markets ... charts can be an extremely valuable tool-if you know how to use them. This booklet is a good place to start learning how." --from the foreword by John Murphy Renowned market technician John Murphy presents basic principals of technical analysis in easy-to-understand term. He covers * All types of chart analysis * "Need to know" concepts, including trendlines, moving averages, price gaps, reversal patterns, volume & open interest spreads, and more! * Price forecasting and market timing applications * A full resource guide of technical analysis aide * How to use the industry's top tools to obtain a better understanding of what charts can do-and how they can help you grab your portion of today's trading profits.

Leseprobe

Contents

Introduction

Chapter 1: Why Is Chart Analysis So Important?

Market Timing

Chapter 2: What Is Chart Analysis?

Charts Reveal Price Trends

Types of Charts Available

Any Time Dimension

Chapter 3: How to Plot the Daily Bar Chart

Charts Are Used Primarily to Monitor Trends

Chapter 4: Support and Resistance Trendlines and Channels

Chapter 5: Reversal and Continuation Price Patterns

Reversal Patterns

Continuation Patterns

Chapter 6: Price Gaps

Chapter 7: The Key Reversal Day

Chapter 8: Percentage Retracements

Chapter 9: The Interpretation of Volume

Volume Is an Important Part of Price Patterns

On-Balance Volume (OBV)

Plotting OBV

OBV Breakouts

Other Volume Indicators

Chapter 10: Using Different Time Frames for Short- and Long-Term Views

Using Intraday Charts

Going from the Long Term to the Short Term

Chapter 11: Using A Top-Down Market Approach

The First Step: The Major Market Averages

The Second Step: Sectors and Industry Groups

The Third Step: Individual Stocks

Chapter 12: Moving Averages

Popular Moving Averages

Bollinger Bands

Moving Average Convergence Divergence (MACD)

Chapter 13: Oscillators

Relative Strength Index (RSI)

Stochastics

Any Time Dimension

Chapter 14: Ratios and Relative Strength

Sector Ratios

Stock Ratios

Market Ratios

Chapter 15: Options

Option Put/Call Ratio

Contrary Indicator

CBOE Volatility Index (VIX)

Chapter 16: The Principle of Confirmation

Chapter 17: Summary and Conclusion

Investing Resource Guide

Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Introduction

Chart analysis has become more popular than ever. One of the reasons for that is the availability of highly sophisticated, yet inexpensive, charting software. The average trader today has greater computer power than major institutions had just a couple of decades ago. Another reason for the popularity of charting is the Internet. Easy access to Internet charting has produced a great democratization of technical information. Anyone can log onto the Internet today and see a dazzling array of visual market information. Much of that information is free or available at very low cost.

Another revolutionary development for traders is the availability of live market data. With the increased speed of market trends in recent years, and the popularity of short-term trading methods, easy access to live market data has become an indispensable weapon in the hands of technically oriented traders. Day-traders live and die with that minute-to-minute price data. And, it goes without saying, that the ability to spot and profit from those short-term market swings is one of the strong points of chart analysis.

Sector rotation has been especially important in recent years. More than ever, it’s important to be in the right sectors at the right time. During the second half of 1999, technology was the place to be and that was reflected in enormous gains in the Nasdaq market. Biotech and high-tech stocks were the clear market leaders. If you were in those groups, you did great. If you were anywhere else, you probably lost money.