| TITLE : TECHNICAL ANALYSIS COURSE: A WINNING PROGRAM FOR INVESTORS & TRADERS, THE. REV. ED. |
INTRODUCTION LESSON 1 The Philosophy of Technical Analysis 3 The Basic Principles Technical Analysis Defined Adaptability to Different Markets and Investment Time Horizons CONSTRUCTING CHARTS 11 LESSON 2 Basic Chart Construction 13 Types of Charts The Bar Chart Arithmetic versus Logarithmic Scale Volume Open Interest Where to Find Data Chart Services Personal Computer Software PROFITABLE CHART PATTERNS 27 LESSON 3 Major Reversal Chart Patterns 29 Key Reversals Head and Shoulders Tops and Bottoms Rounding Tops and Bottoms (Saucers) Ascending and Descending Triangles Rectangles Double and Triple Tops and Bottoms Diamond Rising and Falling Wedges V Formations (Spikes) LESSON 4 Consolidation Formations 57 Flags Pennants Head and Shoulders Continuation Patterns Symmetrical Triangle LESSON 5 Gaps 67 Frequency of Appearance Insignificant Gaps Significant Gaps Common Gap Breakaway Gap Runaway Gap Exhaustion Gap The Island Reversal The Total Picture A Wall Street Myth-Gaps Must Be Closed KEY ANALYTICAL TOOLS 83 LESSON 6 Trendlines and Channels 85 How Trendlines Are Drawn Significance of a Trendline Validity of Trendline Penetration Trendline Role Reversal Trend Channels The Fan Principle LESSON 7 Support and Resistance 101 Support and Resistance Defined Role Reversal Trend Reversals Percentage Retracements Speed Resistance Lines LESSON 8 Using Moving Averages 115 Simple Moving Average Weighted Moving Average Exponential Moving Average Multiple Moving Averages Envelopes (Trading Bands) LESSON 9 Relative Strength Analysis 131 Industry Group versus a Market Index Individual Stock versus an Industry Group LESSON 10 Volume and Open Interest 139 Basic Rules of Volume Blowoffs and Selling Climaxes On-Balance Volume Volume Reversal Open Interest ADVANCED ANALYSIS 147 LESSON 11 Oscillators 149 Oscillator Interpretation Types of Oscillators Momentum oscillators Rate of Change Oscillators Moving Average Oscillators LESSON 12 Relative Strength Index 157 Conceptual Basis of the Relative Strength Index How to Calculate the Relative Strength Index Interpreting the Relative Strength Index LESSON 13 Stochastics 165 Calculation Divergence Analysis Extreme Readings Reversal Warning Signal ALTERNATIVE CHARTING METHODS 173 LESSON 14 Point and Figure Charting 175 Point and Figure Charts versus Bar Charts Constructing Point and Figure Charts Box Size Reversal Criteria Chart Patterns Trendlines LESSON 15 Japanese Candlestick Charting 185 Constructing Candlestick Lines Key Bullish Reversal Patterns Key Bearish Reversal Patterns Key Continuation Patterns Real Market Examples OVERALL MARKET ANALYSIS 205 LESSON 16 The Dow Theory 207 Basic Principles The Dow Theory's Defects LESSON 17 Technical Market Indicators 217 Breadth Indicators Advance/Decline Indicators Advance-Decline Line Advance/Decline Noncumulative Breadth Advance/Decline Indicator Volume Indicators Cumulative Volume Index Upside/Downside Ratio New High/New Low Indicators High Low Logic Index New High/New Low Ratio Sentiment Indicators Advisory Sentiment Index Odd Lot Balance Index Put/Call Ratio Specialist Short Ratio Monetary Indicators Fed Funds-Discount Rate Spread Index Three Steps and a Stumble Two Tumbles and a Jump Combining Indicators into a Model PUTTING IT ALL TOGETHER 235 LESSON 18 A Structured Approach to Technical Analysis 237 Stocks Options Commodities Final Thoughts LESSON 19 A Final Case Study 243 Overall Market Analysis Industry Analysis Individual Stock Analysis Summary of Findings APPENDIX 287 Sources of Technical Related information 289 Financial Newspapers Magazines Chart Services Recommended Books Recommended Technical Analysis Software Glossary 297 Index 301