The Technical Analysis Course, Fourth Edition: Learn How to Forecast and Time the Market - Softcover

Meyers, Thomas

Softcover

ISBN 10: 0071749020 ISBN 13: 9780071749022

Verlag: McGraw-Hill Education, 2011

Inhaltsangabe

The Classic Introduction to Technical Analysis--Fully Updated and Revised!

The most reliable method for forecasting trends and timing market turns, technical analysis is as close to a "scientific" trading approach as you can get-and it is particularly valuable in today's volatile markets. The Technical Analysis Course, Fourth Edition, provides the know-how you need to make this powerful tool part of your overall investing strategy.

Through a series of lessons and exams, you'll master the techniques used by the most successful technical analysts in the market today. Updated with hundreds of real market examples, The Technical Analysis Course provides the essential foundation for using time-tested technical analysis techniques to profit from the markets. You'll learn how to:

• Identify profitable chart patterns, including reversals, consolidation formations, and gaps
• Utilize key analytical tools, including trendlines and channels, support and resistance, relative strength analysis, and volume and open interest
• Perform advanced analysis using moving averages, trading bands, Bollinger Bands, oscillators, the Relative Strength Index, stochastics, and moving average convergence-divergence
• Purchase stocks, bonds, futures, and options when prices are near their bottoms and sell when prices are close to their highs

Critical Acclaim for THE TECHNICAL ANALYSIS COURSE

"If you are a neophyte in the markets, this may be the book for you. It won't turn you into an overnight market wizard. You will, however, acquire an excellent grasp of market terminology and be a step ahead toward trading success and fortune."
--Technical Analysis of Stocks & Commodities

Über diesen Titel

Über die Autorin bzw. den Autor

McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide

Auszug. © Genehmigter Nachdruck. Alle Rechte vorbehalten.

THE TECHNICAL ANALYSIS COURSE

LEARN HOW TO FORECAST AND TIME THE MARKET

By THOMAS A. MEYERS

The McGraw-Hill Companies, Inc.

Copyright © 2011 Thomas A. Meyers
All rights reserved.

ISBN: 978-0-07-174902-2

Contents

FINAL EXAM
HOW TO TAKE THIS COURSE
INTRODUCTION
LESSON 1 The Philosophy of Technical Analysis
CONSTRUCTING CHARTS
LESSON 2 Basic Chart Construction
PROFITABLE CHART PATTERNS
LESSON 3 Major Reversal Chart Patterns
LESSON 4 Consolidation Formations
LESSON 5 Gaps
EXAM 1 KEY ANALYTICAL TOOLS
LESSON 6 Trendlines and Channels
LESSON 7 Support and Resistance
LESSON 8 The True Value of Failed Signals
LESSON 9 Relative Strength Analysis
LESSON 10 Volume and Open Interest
EXAM 2 ADVANCED ANALYSIS
LESSON 11 Using Moving Averages
LESSON 12 Trading Bands and Bollinger Bands
LESSON 13 Confirmation and Divergence
LESSON 14 Oscillators
LESSON 15 Relative Strength Index
LESSON 16 Stochastics
LESSON 17 Moving Average Convergence-Divergence
EXAM 3 PUTTING IT ALL TOGETHER
LESSON 18 A Structured Approach to Technical Analysis
LESSON 19 A Case Study
APPENDIX A Alternative Charting Methods
APPENDIX B Recommended Technical Analysis Books
APPENDIX C Glossary
APPENDIX D Answers to Exams
INDEX

Excerpt

CHAPTER 1

LESSON 1The Philosophy of Technical Analysis

Those in the know on Wall Street have increasingly turned to technical analysisin recent years. They realize that security prices do not move randomly; ratherthey move in repeating and identifiable patterns. They use this information togain an edge on other investors and make money in the stock market. This coursewill enable others to do the same by making profitable investment decisionsbased on proven technical analysis techniques.

THE BASIC PRINCIPLES

Before learning about the specific tools and techniques the technician (onewho employs technical analysis) uses to analyze various investmentopportunities, it is essential that one understand the principles upon whichtechnical analysis is based. The three key principles are:

1. Everything is discounted and reflected in market prices.

2. Prices move in trends, and trends persist.

3. Market action is repetitive.

Let's examine each principle in detail. The first and most important principleis that everything is discounted and reflected in market prices. The technicianbelieves that all knowledge, regardless of type (fundamental, economic,political, psychological, or other), is already reflected and discounted inmarket prices. Technicians, unlike fundamental analysts, feel that it is futileto study company financial statements, earnings and dividend reports, industrydevelopments, and other data in an attempt to determine the "intrinsic value" ofa stock or other market instrument since it is common to have a wide divergencebetween the intrinsic value and the actual market price. For example, it is notunusual for a company's stock to be trading at a price well above or below itsbook value per share. Technicians believe that the real value of a share ofstock or other market instrument at any point is determined solely by supply anddemand as reflected in trading activity.

Price movements are simply the reflection of changes in supply and demand. Thetechnician does not care what the underlying forces of a shift in supply anddemand are. Rather he or she is interested in what occurs. If demand is greaterthan supply, prices will increase. On the other hand, if supply is greater thandemand, prices will decline. The study of market prices is all that isnecessary.

The second principle on which technical analysis is based is that prices move intrends, and trends persist. The supply and demand balance sets a trend inmotion. Once in motion, a trend remains intact until it ends. For example, if astock's price is moving up, it will continue its rise until there is a clearreversal. Likewise, if a stock is moving down, it will decline until a reversal.

An analogy will further clarify the second principle. When a car is parked in agarage, it is, in essence, trendless because it is not moving in a givendirection. Assume that a car is driven on to a street moving northbound. Whenthe driver first turns onto that street, he or she is moving slowly butgradually picks up speed until a speed of 50 miles per hour is reached. Thedirection or trend is northbound. In order to change direction (or trend) tosouthbound, the driver would first have to slow down from 50 miles per hour, toperhaps 5 miles per hour, and turn around (or, perhaps, stop and drive inreverse). The driver could not instantly change direction (or trend), and, ifsomeone was following, this following motorist would be signaled by the slowingdown before the first driver reversed direction (or trend).

Market prices move in a similar manner. First, they begin in one direction, upor down, creating a trend. That trend persists until the price movement slowsand gives warning before finally reversing and moving in the opposite direction.At that point a new trend is initiated. As illustrated in Figure 1-1,trends can be easily spotted on charts. The chart patterns show the balance ofsupply and demand for a particular stock or other market instrument.

The final key principle on which technical analysis is based is that marketaction is repetitive. Certain patterns appear time after time on charts. Thesepatterns have meanings that can be interpreted in terms of probable future pricemovement. Although not infallible, the odds are in their favor.

Human nature is such that it tends to react to similar situations in consistentways. As a rule, people will act the same way they have in the past. Since thestock market is a reflection of the actions of people, technicians study it todetermine how people will react under certain conditions and, thus, how securityprices will move. Technicians analyze the recurrence of similar characteristicsin an attempt to identify major market tops and bottoms.

TECHNICAL ANALYSIS DEFINED

Giving consideration to the principles discussed above, technical analysis canbe defined as simply the study of individual securities and the overallmarket based on supply and demand. Technicians record, usually in chartform, historical price and volume activity and deduce from that pictured historythe probable future trend of prices.

ADAPTABILITY TO DIFFERENT MARKETS AND INVESTMENT TIME HORIZONS

The beauty of technical analysis is that it can be applied effectively tovirtually any trading medium and investment time horizon. A technician cananalyze stocks, bonds, options, mutual funds, commodities, and many other formsof investments for buy and sell opportunities. And one can do so by...

Details zur Ausgabe

• Verlag: McGraw-Hill Education
• Erscheinungsdatum: 2011
• Sprache: Englisch
• ISBN 10: 0071749020
• ISBN 13: 9780071749022
• Einband: Taschenbuch
• Auflage: 4
• Anzahl der Seiten: 416
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: gpsr@libri.de; gpsr@libri.de; ; Europaallee 1; Bad Hersfeld; 36244; Deutschland