Technical Analysis For Dummies, 4th Edition

Book description

Grasp and apply the basic principles of technical analysis

Savvy traders know that the best way to maximize return is to interpret real-world market information for themselves rather than relying solely on the predictions of professional analysts. This straightforward guide shows you how to put this into profitable action—from basic principles and useful formulas to current theories on market trends and behavioral economics—to make the most lucrative decisions for your portfolio.

The latest edition of Technical Analysis for Dummies includes a brand-new chapter on making the right decisions in a bull or bear market, an updated look at unique formulas and key indicators, as well as refreshed and practical examples that reflect today today's financial atmosphere.

  • Become an expert in spotting market trends and key indicators
  • Get the skinny on the latest research on behavioral economics
  • Take a deep dive into how to read market sentiment and make it work for you
  • Get a look at the first innovation in charting for decades—straight from Japan

With comprehensive coverage from charting basics to the cutting edge, Technical Analysis for Dummies includes everything you need to the make informed independent market decisions that will maximize your profits. Happy trading!

Table of contents

  1. Cover
  2. Introduction
    1. About This Book
    2. Foolish Assumptions
    3. Icons Used in This Book
    4. Where to Go from Here
  3. Part 1: Getting Started with Technical Analysis
    1. Chapter 1: Introducing Technical Analysis
      1. Stepping Up to Science
      2. Unpacking Lingo
      3. Buy-and-Hold Is Bunk
      4. Recognizing Who Uses Technical Analysis
      5. Remembering the Trend Is Your Friend
      6. Viewing the Scope of Technical Analysis
      7. Why Technical Analysis Works and What Can Go Wrong
      8. Why Technical Analysis Gets a Bad Rap
      9. Finding Order
      10. What You Need to Get Started
    2. Chapter 2: Tapping into the Wisdom of the Crowd
      1. Comprehending the Conventional Supply/Demand Model
      2. The eBay Model of Supply and Demand
      3. Identifying Crowd Behavior
      4. Defining Normal
      5. Breaking Normal
      6. Accepting When the Crowd Is Extreme
    3. Chapter 3: Trade What You See: Market Sentiment
      1. Where Market Sentiment Comes from and What It’s Good For
      2. Thinking Outside the Chart: Gauging Sentiment
      3. Getting the Lowdown on Volume
      4. Blindsiding Yourself
      5. Thinking Scientifically
    4. Chapter 4: Gaining Critical Advantage from Indicators
      1. Overcoming Noise
      2. Indicators Give You the Edge
      3. Examining How Indicators Work
      4. Establishing Benchmark Levels
      5. Choosing Indicators
      6. Examining Indicators in Detail
    5. Chapter 5: Managing the Trade
      1. Building Trading Rules
      2. Knowing How Much Is Enough
      3. Controlling Losses
      4. Using the First Line of Defense: Stop-Loss Orders
      5. Adjusting Positions
      6. Managing Your Trades Like a Pro
  4. Part 2: Building Indicators from the Ground Up
    1. Chapter 6: Reading Basic Bars: How to Pounce on Opportunities
      1. Building Basic Bars
      2. Putting It All Together: Using Bars to Identify Trends
      3. Overcoming Murky Bar Waters
      4. Framing Your Bars
      5. Applying Bar Reading in Real Time
    2. Chapter 7: Special Bars — An Early Warning System
      1. Finding Clues to Trader Sentiment
      2. Identifying Common Special Bars
      3. Decoding Spikes
      4. Getting Gaps
      5. Filling the Gap
      6. Using the Trading Range as a Tool
    3. Chapter 8: Redrawing the Price Bar: Japanese Candlesticks
      1. Appreciating the Candlestick Advantage
      2. Dissecting the Anatomy of a Candlestick
      3. Sizing Up Emotions
      4. Identifying Special Emotional Extreme Candlestick Patterns
      5. Combining Candlesticks with Other Indicators
      6. Trading on Candlesticks Alone
  5. Part 3: Finding Patterns
    1. Chapter 9: Seeing Patterns
      1. Introducing Patterns
      2. Cozying Up to Continuation Patterns
      3. Recognizing Classic Reversal Patterns
      4. Evaluating the Measured Move
    2. Chapter 10: Drawing Trendlines
      1. Looking Closely at a Price Chart
      2. Following the Rules with Rule-Based Trendlines
      3. Drawing Internal Trendlines
    3. Chapter 11: Transforming Channels into Forecasts
      1. Diving into Channel-Drawing Basics
      2. Riding the Regression Range
      3. Dealing with Breakouts
      4. Examining Pivot Point Support and Resistance Channel
  6. Part 4: Dynamic Analysis
    1. Chapter 12: Using Dynamic Lines
      1. Introducing the Simple Moving Average
      2. Adjusting the Moving Average
      3. Using Multiple Moving Averages
      4. Delving into Moving Average Convergence and Divergence
    2. Chapter 13: Measuring Momentum
      1. Doing the Math: Calculating Momentum
      2. Pondering the Trickier Aspects of Momentum
      3. Applying Momentum
      4. Determining the Relative Strength Index (RSI)
      5. Using the Rest of the Price Bar: The Stochastic Oscillator
    3. Chapter 14: Estimating Volatility
      1. Catching a Slippery Concept
      2. Measuring Volatility
      3. Applying Volatility Measures: Bollinger Bands
      4. Applying Stops with Average True Range Bands
    4. Chapter 15: Ignoring Time to Create Better Timing
      1. Focusing on Tick Bars: In the Spirit of Ignoring Time
      2. Narrowing the Focus to the Move Itself: The Constant Range Bar
      3. Catching the Big Kahuna: Point-and-Figure Charts
      4. Visualizing What’s Important
      5. Applying Patterns
      6. Projecting Prices after a Breakout
      7. Combining P&F Techniques with Other Indicators
    5. Chapter 16: Combining Techniques
      1. Adding a New Indicator: Introducing Complexity
      2. Sailing into Outer Space
      3. Trading with Limited Expectancy: Semi-System, Setup, and Guerilla Trading
    6. Chapter 17: Judging Cycles and Waves
      1. Defining a Cycle and a Wave
      2. Cycling with Supply and Demand — The Pragmatic Mr. Wyckoff
      3. Finding Universal Harmony — Hurst’s Magic Numbers
      4. Looking to the Moon and the Stars
      5. Following the Earth’s Axis: Seasonality and Calendar Effects
      6. Examining Big-Picture Cycle Theories
      7. Shining a Spotlight on the Magnificent Mr. Gann
      8. Embracing the Most Popular Wave Idea — The Elliott Wave
    7. Chapter 18: The Mind-Blowing Ichimoku
      1. Taking a Closer Look at Ichimoku
      2. Grasping Why Analysts Rely on Ichimoku and Why You Can
      3. Using Ichimoku in Your Analysis
      4. Trading with Ichimoku
  7. Part 5: The Part of Tens
    1. Chapter 19: Ten Secrets of the Top Technical Traders
      1. Appreciate Probability
      2. Backtesting Matters
      3. The Trend Is Your Friend
      4. Entries Count as Much as Exits
      5. Stops Aren’t Optional
      6. Treat Trading as a Business
      7. Eat Your Spinach
      8. Technical Stuff Never Goes out of Date
      9. Diversify
      10. Swallow Hard and Accept Some Math
    2. Chapter 20: Ten Rules for Working with Indicators
      1. Don’t Jump the Gun
      2. Defeat Your Math Gremlins
      3. Embrace Patterns
      4. Use Support and Resistance
      5. Follow the Breakout Principle
      6. Watch for Convergence and Divergence
      7. Backtest or Practice-Trade Honestly
      8. Accept That Your Indicators Will Fail
      9. Get Over the Idea of Secret Indicators
      10. Open Your Mind
  8. Appendix: Additional Resources
    1. The Bare Minimum
    2. Additional Reading
  9. Index
  10. About the Author
  11. Connect with Dummies
  12. End User License Agreement

Product information

  • Title: Technical Analysis For Dummies, 4th Edition
  • Author(s): Barbara Rockefeller
  • Release date: October 2019
  • Publisher(s): For Dummies
  • ISBN: 9781119596554