The Handbook of Technical Analysis + Test Bank E-Book

Mark Andrew Lim

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

Seitenzahl: 1247

Veröffentlichungsjahr: 2015

Beschreibung

A self study exam preparatory guide for financial technical analysis certifications Written by the course director and owner of www.tradermasterclass.com, a leading source of live and online courses in trading, technical analysis, and money management, A Handbook of Technical Analysis: The Practitioner's Comprehensive Guide to Technical Analysis is the first financial technical analysis examination preparatory book in the market. It is appropriate for students taking IFTA CFTe Level I and II (US), STA Diploma (UK), Dip TA (Aus), and MTA CMT Level I, II, and III exams in financial technical analysis, as well as for students in undergraduate, graduate, or MBA courses. The book is also an excellent resource for serious traders and technical analysts, and includes a chapter dedicated to advanced money management techniques. This chapter helps complete a student's education and also provides indispensable knowledge for FOREX, bond, stock, futures, CFD, and option traders. * Learn the definitions, concepts, application, integration, and execution of technical-based trading tools and approaches * Integrate innovative techniques for pinpointing and handling market reversals * Understand trading mechanisms and advanced money management techniques * Examine the weaknesses of popular technical approaches and find more effective solutions The book allows readers to test their current knowledge and then check their learning with end-of-chapter test questions that span essays, multiple choice, and chart-based annotation exercises. This handbook is an essential resource for students, instructors, and practitioners in the field. Alongside the handbook, the author will also publish two full exam preparatory workbooks and a bonus online Q&A Test bank built around the most popular professional examinations in financial technical analysis.

Leseprobe

The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered—some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future. For more on this series, visit our Web site at www.WileyTrading.com.

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers' professional and personal knowledge and understanding.

The Handbook of Technical Analysis

The Practitioner's Comprehensive Guide to Technical Analysis

MARK ANDREW LIM

Cover Design: Wiley Cover Image: ©Krystian Nawrocki / iStockphoto.com

Copyright © 2016 by John Wiley & Sons Singapore Pte. Ltd.

Published by John Wiley & Sons Singapore Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628

All rights reserved.

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 expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: [phone], fax: [phone], e-mail: [email protected].

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 the author shall be liable for any damages arising herefrom.

Other Wiley Editorial OfficesJohn Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

ISBN 978-1-118-49891-0 (Paperback) ISBN 978-1-118-49893-4 (ePDF) ISBN 978-1-118-49892-7 (ePub)

I dedicate this work to my family, for their unconditional support and encouragement through thick and thin.

Contents

Foreword

Preface

OVERVIEW OF THE BOOK CONTENTS

ONLINE MATERIALS

Acknowledgments

About the Author

CHAPTER 1 Introduction to the Art and Science of Technical Analysis

1.1 MAIN OBJECTIVE OF TECHNICAL ANALYSIS

1.2 DUAL FUNCTION OF TECHNICAL ANALYSIS

1.3 FORECASTING PRICE AND MARKET ACTION

1.5 SUBJECTIVITY IN TECHNICAL ANALYSIS

1.6 BASIC ASSUMPTIONS OF TECHNICAL ANALYSIS

1.7 FOUR BASIC ASSUMPTIONS IN THE APPLICATION OF TECHNICAL ANALYSIS

1.8 MARKET PARTICIPANTS

1.9 CHAPTER SUMMARY

CHAPTER 1 REVIEW QUESTIONS

REFERENCES

CHAPTER 2 Introduction to Dow Theory

2.1 ORIGINS AND PROPONENTS OF DOW THEORY

2.2 BASIC ASSUMPTIONS OF DOW THEORY

2.3 CHALLENGES TO DOW THEORY

2.4 CHAPTER SUMMARY

CHAPTER 2 REVIEW QUESTIONS

REFERENCES

CHAPTER 3 Mechanics and Dynamics of Charting

3.1 THE MECHANICS AND DYNAMICS OF CHARTING

3.2 GAP ACTION: FOUR TYPES OF GAPS

3.3 CONSTANT CHART MEASURES

3.4 FUTURES CONTRACTS

3.5 CHAPTER SUMMARY

CHAPTER 3 REVIEW QUESTIONS

REFERENCES

CHAPTER 4 Market Phase Analysis

4.1 DOW THEORY OF MARKET PHASE

4.2 CHART PATTERN INTERPRETATION OF MARKET PHASE

4.3 VOLUME AND OPEN INTEREST INTERPRETATION OF MARKET PHASE

4.4 MOVING AVERAGE INTERPRETATION OF MARKET PHASE

4.5 DIVERGENCE AND MOMENTUM INTERPRETATION OF MARKET PHASE

4.6 SENTIMENT INTERPRETATION OF MARKET PHASE

4.7 SAKATA’S INTERPRETATION OF MARKET PHASE

4.8 ELLIOTT’S INTERPRETATION OF MARKET PHASE

4.9 CYCLE ANALYSIS INTERPRETATION OF MARKET PHASE

4.10 CHAPTER SUMMARY

CHAPTER 4 REVIEW QUESTIONS

REFERENCES

CHAPTER 5 Trend Analysis

5.1 DEFINITIONS OF A TREND

5.2 QUALITY OF TREND: 16 PRICE CHARACTERISTICS IMPACTING FUTURE PRICE ACTION AND TREND STRENGTH

5.3 PRICE AND TREND FILTERS

5.4 TREND PARTICIPATION

5.5 PRICE INFLECTION POINTS

5.6 TRENDLINES, CHANNELS, AND FAN LINES

5.7 TREND RETRACEMENTS

5.8 GAPS AND TRENDS

5.9 TREND DIRECTIONALITY

5.10 DRUMMOND GEOMETRY

5.11 FORECASTING TREND REVERSALS

5.12 CHAPTER SUMMARY

CHAPTER 5 REVIEW QUESTIONS

REFERENCES

CHAPTER 6 Volume and Open Interest

6.1 THE MECHANICS OF VOLUME ACTION

6.2 VOLUME OSCILLATORS

6.3 CHAPTER SUMMARY

CHAPTER 6 REVIEW QUESTIONS

REFERENCES

CHAPTER 7 Bar Chart Analysis

7.1 PRICE BAR PATTERN CHARACTERISTICS

7.2 PRICE BAR PATTERN CHARACTERISTICS

7.3 POPULAR BAR REVERSAL PATTERNS

7.4 VOLATILITY-BASED BREAKOUT PATTERNS

7.5 CHAPTER SUMMARY

CHAPTER 7 REVIEW QUESTIONS

REFERENCES

CHAPTER 8 Window Oscillators and Overlay Indicators

8.1 DEFINING INDICATORS AND OSCILLATORS

8.2 EIGHT WAYS TO ANALYZE AN OSCILLATOR

8.3 CYCLE PERIOD, MULTIPLE TIMEFRAMES, AND LAGGING INDICATORS

8.4 INPUT DATA

8.5 TREND TRADING USING OSCILLATORS

8.6 WINDOW OSCILLATORS

8.7 OVERLAY INDICATORS

8.8 CHAPTER SUMMARY

CHAPTER 8 REVIEW QUESTIONS

REFERENCES

CHAPTER 9 Divergence Analysis

9.1 DEFINITION OF DIVERGENCE

9.2 GENERAL CONCEPT OF DIVERGENCE

9.3 STANDARD AND REVERSE DIVERGENCE

9.4 PRICE CONFIRMATION IN DIVERGENCE ANALYSIS

9.5 SIGNAL ALTERNATION BETWEEN STANDARD AND REVERSE DIVERGENCE

9.6 MORE EXAMPLES OF DIVERGENCE

9.7 CHAPTER SUMMARY

CHAPTER 9 REVIEW QUESTIONS

REFERENCES

CHAPTER 10 Fibonacci Number and Ratio Analysis

10.1 THE FIBONACCI NUMBER SERIES

10.2 FIBONACCI RATIOS

10.3 FIBONACCI RETRACEMENTS, EXTENSIONS, PROJECTIONS, AND EXPANSIONS

10.4 FIBONACCI (Φ-BASED) PERCENTAGE RETRACEMENT LEVELS WITHIN AN OBSERVED PRICE RANGE

10.5 FIBONACCI (Φ-BASED) PERCENTAGE EXTENSION LEVELS BEYOND AN OBSERVED PRICE RANGE

10.6 FIBONACCI (Φ-BASED) PERCENTAGE EXPANSION LEVELS BEYOND AN OBSERVED PRICE RANGE

10.7 FIBONACCI (Φ-BASED) PERCENTAGE PROJECTION LEVELS FROM A SIGNIFICANT PEAK OR TROUGH

10.8 WHY SHOULD FIBONACCI RATIOS OR NUMBERS WORK AT ALL?

10.9 GEOMETRICALLY VERSUS NUMERICALLY BASED FIBONACCI OPERATIONS

10.10 THE FIBONACCI TRADER’S TECHNICAL TOOLBOX

10.11 AREA OF APPLICATION

10.12 SELECTING EFFECTIVE INFLECTION POINTS FOR FIBONACCI OPERATIONS

10.13 FIBONACCI, DOW, GANN, AND FLOOR TRADER’S PIVOT POINT LEVELS

10.14 PROBABILITY OF CONTINUATION AND REVERSAL IN FIBONACCI RETRACEMENTS AND EXTENSIONS

10.15 FIBONACCI-BASED ENTRIES, STOPLOSSES, AND MINIMUM PRICE OBJECTIVES

10.16 FIBONACCI TWO- AND THREE-LEG RETRACEMENTS

10.17 FIBONACCI FAN LINES

10.18 FIBONACCI CHANNEL EXPANSIONS

10.19 FIBONACCI ARCS

10.20 SUPPORTIVE AND RESISTIVE FIBONACCI CLUSTERS

10.21 POTENTIAL BARRIERS IN FIBONACCI PROJECTIONS

10.22 FIBONACCI TIME AND RATIO PROJECTION ANALYSIS ON ELLIOTT WAVES

10.23 CHAPTER SUMMARY

CHAPTER 10 REVIEW QUESTIONS

REFERENCES

CHAPTER 11 Moving Averages

11.1 SEVEN MAIN COMPONENTS OF MOVING AVERAGES

11.2 NINE MAIN APPLICATIONS OF MOVING AVERAGES

11.3 CHAPTER SUMMARY

CHAPTER 11 REVIEW QUESTIONS

REFERENCES

CHAPTER 12 Envelopes and Methods of Price Containment

12.1 CONTAINING PRICE ACTION AND VOLATILITY ABOUT A CENTRAL VALUE

12.2 ADJUSTING BANDS FOR EFFECTIVE PRICE CONTAINMENT

12.3 METHODS OF PRICE CONTAINMENT

12.4 CHAPTER SUMMARY

CHAPTER 12 REVIEW QUESTIONS

REFERENCES

CHAPTER 13 Chart Pattern Analysis

13.1 ELEMENTS OF CHART PATTERN ANALYSIS

13.2 PRECONDITIONS FOR RELIABLE CHART PATTERN REVERSALS

13.3 POPULAR CHART PATTERNS

13.4 CHAPTER SUMMARY

CHAPTER 13 REVIEW QUESTIONS

REFERENCES

CHAPTER 14 Japanese Candlestick Analysis

14.1 ELEMENTS OF CANDLESTICK ANALYSIS

14.2 POPULAR CANDLESTICK PATTERNS AND THEIR PSYCHOLOGY

14.3 INTEGRATING CANDLESTICK ANALYSIS

14.4 FILTERED CANDLESTICKS

14.5 TRADING WITH CANDLESTICKS

14.6 CHAPTER SUMMARY

CHAPTER 14 REVIEW QUESTIONS

REFERENCES

CHAPTER 15 Point-and-Figure Charting

15.1 BASIC ELEMENTS OF POINT-AND-FIGURE CHARTS

15.2 BASIC POINT-AND-FIGURE CHART PATTERNS

15.3 POINT-AND-FIGURE MINIMUM PRICE OBJECTIVES

15.4 BULLISH PERCENT INDEX AND RELATIVE STRENGTH

15.5 CHAPTER SUMMARY

CHAPTER 15 REVIEW QUESTIONS

REFERENCES

CHAPTER 16 Ichimoku Charting and Analysis

16.1 CONSTRUCTING THE FIVE ICHIMOKU OVERLAYS

16.2 FUNCTIONAL ASPECT OF ICHIMOKU OVERLAYS

16.3 ADVANTAGES AND DISADVANTAGES OF USING ICHIMOKU CHARTING

16.4 TIME AND PRICE DOMAIN CHARACTERISTICS OF ICHIMOKU OVERLAYS

16.5 BASIC ICHIMOKU PRICE-PROJECTION TECHNIQUES

16.6 CHAPTER SUMMARY

CHAPTER 16 REVIEW QUESTIONS

REFERENCES

CHAPTER 17 Market Profile

17.1 THE SEARCH FOR FAIR PRICE OR VALUE

17.2 THE DAILY PROFILE FORMATIONS

17.3 CHAPTER SUMMARY

CHAPTER 17 REVIEW QUESTIONS

REFERENCES

CHAPTER 18 Basic Elliott Wave Analysis

18.1 ELEMENTS OF ELLIOTT WAVE ANALYSIS

18.2 RULES AND GUIDELINES

18.3 MOTIVE WAVES

18.4 CORRECTIVE WAVES

18.5 WAVE EXTENSIONS AND TRUNCATION

18.6 ALTERNATION

18.7 WAVE EQUALITY

18.8 FIBONACCI RATIO AND NUMBER ANALYSIS OF ELLIOTT WAVES

18.9 CHAPTER SUMMARY

CHAPTER 18 REVIEW QUESTIONS

REFERENCES

CHAPTER 19 Basics of Gann Analysis

19.1 TECHNIQUES OF W. D. GANN

19.4 CHAPTER SUMMARY

CHAPTER 19 REVIEW QUESTIONS

REFERENCES

CHAPTER 20 Cycle Analysis

20.1 ELEMENTS OF CYCLE ANALYSIS

20.2 PRINCIPLES OF CYCLE ANALYSIS

20.3 ADDITIONAL CYCLIC CHARACTERISTICS

20.4 TUNING OSCILLATOR AND OVERLAY INDICATORS TO THE DOMINANT CYCLE PERIOD

20.5 IDENTIFYING PRICE CYCLES

20.6 CHAPTER SUMMARY

CHAPTER 20 REVIEW QUESTIONS

REFERENCES

CHAPTER 21 Volatility Analysis

21.1 THE CONCEPT OF CHANGE AND VOLATILITY

21.2 SOME STATISTICAL MEASURES OF PRICE VOLATILITY

21.3 OTHER MEASURES OF MARKET VOLATILITY

21.4 CHAPTER SUMMARY

CHAPTER 21 REVIEW QUESTIONS

REFERENCES

CHAPTER 22 Market Breadth

22.1 ELEMENTS OF BROAD MARKET ACTION

22.2 COMPONENTS OF MARKET BREADTH

22.3 MARKET-BREADTH INDICATORS IN ACTION

22.4 CHAPTER SUMMARY

CHAPTER 22 REVIEW QUESTIONS

REFERENCES

CHAPTER 23 Sentiment Indicators and Contrary Opinion

23.1 ASSESSING THE EMOTION AND PSYCHOLOGY OF MARKET PARTICIPANTS

23.2 PRICE-BASED INDICATORS VERSUS SENTIMENT INDICATORS

23.3 ASSESSING PARTICIPANT ACTIONS

23.4 ASSESSING PARTICIPANTS’ OPINIONS

23.5 CHAPTER SUMMARY

CHAPTER 23 REVIEW QUESTIONS

REFERENCES

CHAPTER 24 Relative Strength Analysis