Getting Started in Chart Patterns E-Book

Thomas N. Bulkowski

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: The Getting Started In Series
• Sprache: Englisch

Seitenzahl: 515

Veröffentlichungsjahr: 2014

Beschreibung

Your plain-English guide to understanding and using technical chart patterns Chart pattern analysis is not only one of the most important investing tools, but also one of the most popular. Filled with expert insights and practical advice from one of the best in the business, Getting Started in Chart Patterns, Second Edition helps new and seasoned traders alike profit by tracking and identifying specific chart patterns. Substantially revised and expanded, this new edition stay true to the original, with author Thomas Bulkowski's frank discussion of how trading behavior can affect the bottom line. Interwoven throughout the technical presentations are fascinating anecdotes drawn from the author's quarter-century as a professional trader that vividly demonstrate how one of the best in the business leverages the power of chart patterns. * Includes additional charts for ETFs and mutual funds * Introduces more than 40 key chart formations, as well as trading tactics that can be used in conjunction with them * Supplies actual trades, with their corresponding dollar amounts If you're looking to gain a better understanding of this discipline, look no further than the Second Edition of Getting Started in Chart Patterns.

Leseprobe

Books in the Getting Started In Series

Getting Started In Currency Trading, Third Edition by Michael D. Archer

Getting Started In Forex Trading Strategies by Michael D. Archer

Getting Started In Asset Allocation by Bill Bresnan and Eric P. Gelb

Getting Started In Chart Patterns by Thomas Bulkowski

Getting Started In Internet Auctions by Alan Elliott

Getting Started In Mutual Funds, Second Edition by Alvin D. Hall

Getting Started In Stocks by Alvin D. Hall

Getting Started In Estate Planning by Kerry Hannon

Getting Started In a Financially Secure Retirement by Henry Hebeler

Getting Started In Online Personal Finance by Brad Hill

Getting Started In REITs by Richard Imperiale

Getting Started in Rebuilding Your 401(k), Second Edition by Paul Katzeff

Getting Started In Security Analysis by Peter J. Klein

Getting Started In Global Investing by Robert P. Kreitler

Getting Started In ETFs by Todd K. Lofton

Getting Started In Futures, Fifth Edition by Todd Lofton

Getting Started In Candlestick Charting by Tina Logan

Getting Started In Project Management by Paula Martin and Karen Tate

Getting Started In Value Investing by Charles Mizrahi

Getting Started In Financial Information by Daniel Moreau and Tracey Longo

Getting Started In Emerging Markets by Christopher Poillon

Getting Started In Technical Analysis by Jack D. Schwager

Getting Started In Hedge Funds, Third Edition by Daniel A. Strachman

Getting Started In Fundamental Analysis by Michael C. Thomsett

Getting Started in Options, Eighth Edition by Michael C. Thomsett

Getting Started In Real Estate Investing by Michael C. Thomsett and Jean Freestone

Getting Started In Rental Income by Michael C. Thomsett

Getting Started In Six Sigma by Michael C. Thomsett

Getting Started in Stock Investing and Trading by Michael C. Thomsett

Getting Started In Swing Trading by Michael C. Thomsett

Getting Started In Annuities by Gordon M. Williamson

Getting Started In Bonds, Second Edition by Sharon Saltzgiver Wright

Getting Started In Retirement Planning by Ronald M. Yolles and Murray Yolles

Getting Started In Chart Patterns, Second Edition by Thomas Bulkowski

Getting Started in CHART PATTERNS

  SECOND EDITION  

Thomas Bulkowski

Cover image: © iStockphoto.com / BLACKRED

Cover design: Wiley

Copyright © 2014 by Thomas Bulkowski. All rights reserved.

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

The first edition of Getting Started in Chart Patterns was published by John Wiley & Sons, Inc, in 2006.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

The Index of Chart and Event Patterns reproduced from Thomas N. Bulkowski, The Encyclopedia of Chart Patterns, Second Edition (Hoboken, NJ: John Wiley & Sons, 2005). Reprinted with permission.

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Library of Congress Cataloging-in-Publication Data:

Bulkowski, Thomas N., 1957- Getting started in chart patterns / Thomas N. Bulkowski. — Second edition. pages cm.—(Getting started in series) Includes index. ISBN 978-1-118-85920-9 (paper)—ISBN 978-1-118-85923-0 (ebk)—ISBN 978-1-118-85911-7 (ebk) 1. Stocks—Charts, diagrams, etc. 2. Commodity futures—Charts, diagrams, etc. 3. Investment analysis. I. Title. HG4638.B853 2014 332.63’2042—dc23

2013047227

To Mary Schramski

Contents

Preface to First and Second Editions

Acknowledgments

Chapter 1: Introduction to Chart Patterns

What Are Chart Patterns?

Enter the Retail Investor

Advantages of Chart Patterns

Disadvantages of Chart Patterns

What Does It Mean?

What We Learned

Chapter 2: Identifying Chart Patterns

The Blank Chart

Connecting Peaks

Connecting Valleys

Patterns with Curves

Patterns with Diagonals

That’s a Wrap

What We Learned

Chapter 3: The Truth about Trendlines

What Are Trendlines?

A Trendline Example

Trendlines: External, Internal, and Curved

Touch Spacing

Trendline Touches

Trendline Length

Trendline Angles

Trendline and Breakout Volume

Measure Rule for Trendlines

Drawing Trendlines

1–2–3 Trend Change Method

Sample Trade Using Trendlines

Advanced Trendline Tactics

What We Learned

Chapter 4: Support and Resistance:

The Most Important Chart Patterns

What Is Support and Resistance?

Chart Pattern SAR

Fibonacci Retracements

Peaks and Valleys

Horizontal Consolidation Regions

Round Number SAR

Trendlines and Channels

SAR and Volume

Using SAR to Trade

What We Learned

Chapter 5: Ten Buy Signals

High and Tight Flag

Pipe Bottoms

Inverted and Ascending Scallops

Three Rising Valleys

Rounding Bottoms

Descending Triangles

Ascending Broadening Wedges

Eve & Eve Double Bottoms

Triple Bottoms

Head-and-Shoulders Bottoms

What We Learned

Chapter 6: Ten Sell Signals

Head-and-Shoulders Tops

Diamond Tops and Bottoms

Double Tops

Ascending and Symmetrical Triangles

Flags and Pennants

Pipe Tops

Measured Moves and the Simple ABC Correction

Broadening Tops and Bottoms

Triple Tops

Selling Details

What We Learned

Chapter 7: Special Situations

Bull and Bear Markets

Bull and Bear Traps

The Dead-Cat Bounce

The Inverted Dead-Cat Bounce

Flat Base

Gaps

Lower Highs and Higher Lows

Partial Rises and Declines

Quick Rises and Declines

Spikes and Tails

Stops

Throwbacks and Pullbacks

What We Learned

Chapter 8: Busted Patterns:

Making Money by Trading Failure

Single, Double, and Triple Busts

Busted Broadening Patterns

Diamonds, Doubles, and Head-and-Shoulders

More Busted Patterns

Busted Trading Tips

Busted: How Often?

What We Learned

Chapter 9: More Trades:

Putting It All Together

IMC Global

Giant Industries

Lam Research

EMC

Rohm and Haas

JLG Industries

Southwest Airlines

Honeywell

Great Plains Energy

What We Learned

Chapter 10: The Art of Trading:

Checklists

Before Buying

When to Sell

General Trading Tips

Trading Psychology

What We Learned

Chapter 1: Introduction to Chart Patterns

Chapter 2: Identifying Chart Patterns

Chapter 3: The Truth about Trendlines

Chapter 4: Support and Resistance

Chapter 5: Ten Buy Signals

Chapter 6: Ten Sell Signals

Chapter 7: Special Situations

Chapter 8: Busted Patterns

Chapter 9: More Trades

Chapter 11: Crunching the Numbers

Chart Pattern Performance: Notes

Glossary

Visual Index of Chart Patterns

About the Author

Index

Wiley End User License Agreement

List of Tables

Chapter 4

Table 4.1

Chapter 7

Table 7.1

Table 7.2

Chapter 8

Table 8.1

Table 8.2

Table 8.3

Table 8.4

Table 8.5

Table 8.6

Table 8.7

Table 8.8

Table 8.9

Table 8.10

Table 8.11

Table 8.12

Table 8.13

Table 8.14

Table 8.15

Table 8.16

Table 8.17

Table 8.18

Table 8.19

Table 8.20

Chapter 10

Table 10.1

Chapter 11

Table 11.1

Glossary

Table G.1

List of Figures

Chapter 1

Figure 1.1 Facebook has an initial offering price of $38, shown at the horizontal line on the daily scale.

Chapter 2

Figure 2.1 Even a blank chart shows valuable information.

Figure 2.2 This uptrend follows a stair step movement higher.

Figure 2.3 Trendlines AB form a rectangle top chart pattern.

Figure 2.4 These chart patterns use curved lines.

Figure 2.5 Chart patterns also form using diagonals.

Chapter 3

Figure 3.1 A falling wedge with an upward breakout marked a buying opportunity until a trendline, drawn along the tops connecting points A and B and extended down, warned that price might stall when it reached the trendline.

Figure 3.2 Shown on the weekly scale are the three types of trendlines: external, internal, and curved. The curved trendline highlights an ascending and inverted scallop chart pattern.

Figure 3.3 Trendlines with widely spaced touches perform better than do ones with narrow touches.

Figure 3.4 Use the distance from the trendline to the price high (A-B), measured vertically then projected downward from the breakout (D) to get a postbreakout price target. This is the measure rule for trendlines, but it only works between 63% (upsloping trendlines) and 80% (downsloping trendlines) of the time.

Figure 3.5 Shown is the 1–2–3 method of detecting a trend change. Point 1 is the breakout from an upsloping trendline. Point 2 is a test of the high, and point 3 is near a close below a recent low.