Technical Analysis For Dummies

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!

Introduction 1

Part 1: Getting Started with Technical Analysis 5

Chapter 1: Introducing Technical Analysis 7

Chapter 2: Tapping into the Wisdom of the Crowd 29

Chapter 3: Trade What You See: Market Sentiment 45

Chapter 4: Gaining Critical Advantage from Indicators 61

Chapter 5: Managing the Trade 79

Part 2: Building Indicators from the Ground Up 101

Chapter 6: Reading Basic Bars: How to Pounce on Opportunities 103

Chapter 7: Special Bars — An Early Warning System 121

Chapter 8: Redrawing the Price Bar: Japanese Candlesticks 141

Part 3: Finding Patterns 157

Chapter 9: Seeing Patterns 159

Chapter 10: Drawing Trendlines 173

Chapter 11: Transforming Channels into Forecasts 187

Part 4: Dynamic Analysis 207

Chapter 12: Using Dynamic Lines 209

Chapter 13: Measuring Momentum 233

Chapter 14: Estimating Volatility 253

Chapter 15: Ignoring Time to Create Better Timing 265

Chapter 16: Combining Techniques 281

Chapter 17: Judging Cycles and Waves 297

Chapter 18: The Mind-Blowing Ichimoku 317

Part 5: The Part of Tens 331

Chapter 19: Ten Secrets of the Top Technical Traders 333

Chapter 20: Ten Rules for Working with Indicators 339

Appendix: Additional Resources 345

Index 351

Barbara Rockefeller is an international economist and forecaster who specializes in foreign exchange. A pioneer in technical analysis, she also led the way in combining technical and fundamental analysis. Barbara publishes daily reports using both techniques for central banks, professional fund managers, corporate hedgers, and individual traders.

• Get a clear overview of technical analysis
• Improve your profits and your portfolio performance
• Spot investment trends and turning points

Discover what savvy securities traders know

The basic principles of technical analysis allow wise securities traders to interpret real-world market information so they can maximize return on investments. In the fourth edition of this book, a professional market forecaster shows you how to use those principles instead of relying solely on experts. Understand the essentials, discover useful formulas, explore current theories on market trends, and hone your skills in spotting key indicators. You'll even get a look at the first innovation in charting in decades!

Inside...

• Understand technical analysis versus value investing
• Build a system from indicators
• Find out how to read basic bars
• Explore Japanese candlesticks
• See patterns & draw trendlines
• Master dynamic analysis
• Discover secrets of top traders