Technical Analysis and Chart Interpretations E-Book

Ed Ponsi

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

Seitenzahl: 502

Veröffentlichungsjahr: 2016

Beschreibung

Ed Ponsi's straightforward guide to understanding technical analysis Technical Analysis and Chart Interpretations delivers simple explanations and easy-to-understand techniques that demystify the technical analysis process. In his usual straightforward style, bestselling author Ed Ponsi guides you through the twists and turns to show you what really matters when it comes to making money. Whether you trade stocks, currencies, or commodities, you'll develop invaluable skills as you master difficult concepts and the tools of the trade. Technical analysis translates to any form of trading, and this book delivers clear, jargon-free guidance toward interpreting the various charts you'll see in the field. Technical analysis can be confusing. Volatility, cycles, Elliot waves, Fibonacci, trends--it's easy to get lost, and most of the available literature is incomprehensible to all but the experts. This book is different--it's technical analysis for the rest of us. You'll see through the language to understand the underlying concepts, and how to apply them correctly. * Learn what true technical analysis entails * Discover the tools that simplify accurate analysis * Master the tactics and strategies used by the pros * Develop a valuable trading skill that transcends markets Simply recognizing the vocabulary isn't nearly enough, and a passing acquaintance with the topic is guaranteed to do more harm than good. When technical analysis methods are used incorrectly, they are ineffective at best, and actively destructive to your bottom line at worst. Technical Analysis and Chart Interpretations cuts through the confusion to give you a firm understanding and the skills to apply it correctly.

Leseprobe

Table of Contents

Title Page

Copyright

Dedication

Introduction: The Journey

About the Author

Part I: The Foundation of Technical Analysis

Chapter 1: Why Technical Analysis?

Technical and Fundamental Divergence

The Collapse of Lehman Brothers

Price Is Truth

Which Technical Analysis Method Will Work Best for You?

Chapter 2: The Language of Trading

Final Thoughts on the Language of Trading

Chapter 3: The Cornerstone

Dow Jones & Company

The Dow Jones Industrial Average

The Dow Jones Transportation Average

Final Thoughts on the Cornerstone

Chapter 4: The Dow Theory

Trends Are Persistent

Confirmation

Volume Confirmation

Other Types of Confirmation

Random Walk Theory

The Middle Ground

Final Thoughts on Dow Theory

Part II: Key Concepts of Technical Analysis

Chapter 5: Common Types of Charts

Price Data

Time Frames

Line Charts

Bar Charts

Candlestick Charts

Point and Figure Charts

The Use of Scale in Charts

Final Thoughts on Common Types of Charts

Chapter 6: Support and Resistance

Support Becomes Resistance, and Vice Versa

The Concept of Anchoring

All Levels Are Not Created Equal

Pullbacks and Throwbacks

Using Breaks in Support

Using Breaks in Resistance

Trading Between Support and Resistance

Final Thoughts on Support and Resistance

Chapter 7: Trends and Trend Lines

Uptrends

Downtrends

Breaking the Trend Line

Consolidation

Degree or Angle of the Trend

Sustainable Trends

Multiple Trend Lines

Channel Lines

Using Channel Lines

Support Becomes Resistance

Final Thoughts on Trends and Trend Lines

Chapter 8: Volume

Institutional vs. Individual Volume

Buyers vs. Sellers

Volume Represents Commitment

High-Volume Breakouts

Volume and Trend

Bearish Trend Volume

Support, Resistance, and Volume

Climactic Volume and Capitulation

Short-Covering Rallies

Final Thoughts on Volume

Chapter 9: Gaps

Full Gaps and Partial Gaps

Gaps in Illiquid Investments

Intraday Gaps

Opening Gaps

Breakaway Gaps

Runaway Gaps

Exhaustion Gaps

Island Reversals

Gap Fills

Currency Market Gaps

Final Thoughts on Gaps

Part III: Price Patterns

Chapter 10: Reversal Chart Patterns

Patterns Are Imperfect

Reversal vs. Continuation Patterns

The Head and Shoulders Reversal Pattern

Inverse Head and Shoulders Pattern

Head and Shoulders Continuation Pattern

Double Top Pattern

Double Bottom Pattern

Triple Top Pattern

Triple Bottom Pattern

Diamond Reversal Patterns

Final Thoughts on Reversal Chart Patterns

Chapter 11: Continuation Patterns

Triangles

Bearish Descending Triangle Pattern

Flags and Pennants

Wedges

Final Thoughts on Continuation Patterns

Chapter 12: Additional Chart Patterns

The Cup with Handle Formation

Fractal Cup with Handle

Respect Both Technical and Fundamental Analysis

The Broadening Formation

Final Thoughts on Additional Chart Patterns

Part IV: Candlestick Patterns

Chapter 13: Candlestick Charting Patterns

Candlestick Reversal Patterns

Complex Candlestick Reversal Patterns

Final Thoughts on Reversal Candles

Chapter 14: Continuation and Indecision Candlestick Patterns

Continuation Candlestick Patterns

Indecision Candlestick Patterns

Final Thoughts on Candlesticks

Part V: Fibonacci

Chapter 15: Fibonacci Trading Techniques

Leonardo Bonacci and

Liber Abaci

The Golden Ratio and Fibonacci Rabbits

Significance in Trading

Fibonacci Retracement Levels

Fibonacci Extensions

Fibonacci Retracements of Greater Than 100%

Fibonacci Time Applications

Fibonacci Cycles

Fibonacci Time Extension Lines

Final Thoughts on Fibonacci

Part VI: Technical Indicators

Chapter 16: Moving Averages

Order of Moving Averages

Moving Average Support and Resistance

Moving Average Trading Signals—Single Crossover System

Average Returns of the Golden Cross and Death Cross

Moving Average Trading Signals—Multiple Crossover Systems

Other Types of Moving Averages

Final Thoughts on Moving Averages

Chapter 17: Moving Average Envelopes and Bollinger Bands

Reversion to the Mean

Moving Average Envelopes

Bollinger Bands

Standard Deviation

Bollinger Band Breakouts

Cycle of Volatility

Bollinger Bandwidth

Final Thoughts on Moving Average Envelopes and Bollinger Bands

Chapter 18: Oscillators

Types of Oscillators

Centered Oscillators

Banded Oscillators

The Stochastic Indicator

Final Thoughts on Oscillators

Chapter 19: Average True Range (ATR)

The Market and the Sea

Creation and Development of ATR

Final Thoughts on ATR

Chapter 20: Complex Indicators

Average Directional Index

Parabolic Stop and Reverse

Always Tighten, Never Loosen

Final Thoughts on Complex Indicators

Part VII: Oscillators

Chapter 21: Point and Figure Charting

Point and Figure Basics

Increment or Box Size

Point and Figure Index Charts

Point and Figure Patterns

Point and Figure Catapult

Point and Figure Triangles

Point and Figure Price Targets

One-Box Reversal Targets

Final Thoughts on Point and Figure Charting

Part VIII: ATR, ADX, and PSAR

Chapter 22: Cycles and Tendencies

The Presidential Election Cycle

The Decennial Cycle

The “Sell in May” Cycle

The Santa Claus Rally

The January Barometer

Seasonal Cycles

Currencies—A Special Situation

Longer-Term Cycles

The Kondratieff Wave

Sector Rotation

Early Stage of Economic Growth

Middle Stage of Economic Growth

Late Stage of Economic Growth

Final Thoughts on Cycles

Part IX: Cycles

Chapter 23: Sentiment Indicators

A Bullish Bias

The AAII Sentiment Survey

The VIX

Commitments of Traders Report

Large Speculators versus Small Speculators

Final Thoughts on Sentiment Indicators

Part X: Point and Figure Charting

Chapter 24: Psychological Aspects of Technical Analysis

Behavioral Traps

Ten Trading Biases

Fallacies, Herding, and More

Final Thoughts on Traps, Biases, and Fallacies

Chapter 25: Understanding Bubbles

The Five Stages of a Credit Cycle

China Stock Bubble 2007

NASDAQ Stock Bubble 1999

China Stock Bubble 2015

Final Thoughts on Bubbles

Chapter 26: Trading versus Reality