New Trading Systems and Methods, Fourth Edition

Contents

Preface

Acknowledgments

CHAPTER 1 Introduction

The Expanding Role of Technical Analysis

Convergence of Trading Styles in Stocks and Futures

A Line in the Sand between Fundamentals and Technicals

Professional and Amateur 4 Random Walk

Random Walk

Background Material

Research Skills

Objectives of This Book

Profile of a Trading System

A Word about the Notation Used in This Book

CHAPTER 2 Basic Concepts

About Data and Averaging

On Average

Price Distribution

Dispersion, Skewness, and Kurtosis

Standardizing Returns and Risk

The Index

Probability

Supply and Demand

CHAPTER 3 Charting

Finding Consistent Patterns

What Creates the Major Price Moves and Trends?

The Bar Chart and Its Interpretation by Charles Dow

Chart Formations

Trendlines

One-Day Patterns

Continuation Patterns

Basic Concepts in Chart Trading

Accumulation and Distribution—Bottoms and Tops

Episodic Patterns

Price Objectives for Bar-Charting

Implied Strategies in Candlestick Charts

Practical Use of the Bar Chart

Evolution in Price Patterns

CHAPTER 4 Charting Systems and Techniques

Dunnigan and the Thrust Method

Nofri's Congestion-Phase System

Outside Days with an Outside Close

Action and Reaction

Channel Breakout

Moving Channels

Combining Techniques

Complex Patterns

A Study of Charting Patterns

CHAPTER 5 Event-Driven Trends

Swing Trading

Constructing a Swing Chart Using a Swing Filter

Point-and-Figure Charting

The N-Day Breakout

CHAPTER 6 Regression Analysis

Components of a Time Series

Characteristics of the Price ...