Technical Analysis for the Trading Professional: Strategies and Techniques for Today's Turbulent Global Financial Markets - Hardcover

Brown, Constance M.

Hardcover

ISBN 10: 007175914X ISBN 13: 9780071759144

Verlag: McGraw-Hill Education Ltd, 2011

Inhaltsangabe

THE TECHNICAL ANALYSIS CLASSIC—REVISED AND UPDATED TO HELP YOU SUCCEED, EVEN DURING TIMES OF EXTREME VOLATILITY

“This book contains the most advanced methodology I’ve ever seen.”
—GEORGE C. LANE, from the Foreword

Required reading for certification in the Chartered Market Technician (CMT) program

Over a decade ago, when this groundbreaking guide was first published, the world of technical analysis had experienced vast change. Seemingly overnight, technological advances had utterly transformed the way market analysts performed their jobs. A growing army of professional technical traders, armed with global plug-and-play software, needed to improve their skills of price projection, timing, and risk management to weather the increasing market ranges and volatility.

Technical Analysis for the Trading Professional helped them achieve it. The word spread that this practical guide provided radical new uses and combinations of indicators and formulas—and it became an instant classic.

By comparison, today’s markets make those of 1999 look simple—so Technical Analysis for the Trading Professional has been expanded to reflect the author’s experiences over the past decade to bring you fully up to date. It provides comprehensive coverage of new techniques, as well as the timeless insight and tools that analysts will always need to maintain a competitive edge in the global financial markets, including:

• Explanations of why common oscillators do not travel between 0 and 100 and why signals develop in different ranges during bull versus bear market trends
• Expanded guidelines for the use of the Composite Index. Formulas are fully detailed for this custom oscillator that warn when the Relative Strength Index is failing to detect a trend reversal
• A comprehensive foundation of Gann analysis, with an explanation of howGann Squares, the Gann Fan, and the Square of 9 are geometrically related to one another
• Methods for calculating Fibonacci retracements and swing projections in rapidly expanding or contracting markets
• A more expansive discussion of cycle analyses and their asymmetrical properties

Each chapter presents the given topic as a separate building block, moving step-by-step through 150 charts that lead toward new methods of price triangulation. The result enables you to pinpoint a market objective—even in the most extreme and volatile trading environment.

Use Technical Analysis for the Trading Professional to establish the trading dominance you need to excel in today’s uncertain markets.

Über diesen Titel

Über die Autorin bzw. den Autor

Constance M. Brown, CMT, is the founder of Aerodynamic Investments, Inc. She was an institutional trader for 12 years and managed a futures hedge fund for six years. Brown is the author of eight other finance books, including Fibonacci Analysis

, which won the Gold Medal of the 2009 Axiom Business Book Awards.

Von der hinteren Coverseite

Now in its second decade, Technical Analysis for the Trading Professional is the number-one go-to guide for market technicians seeking to improve their market timing skills with the most up-to-date tools and techniques. This second edition provides an updated look at unique formulas and key indicators, while retaining all the foundational material that made the previous edition an instant classic.

Technical Analysis for the Trading Professional has been enhanced and expanded to bring you fully up to date on all the essentials, including:

• Dominant trading cycles
• Moving averages
• Fibonacci projections
• Gann Analysis
• Relative Strength Index and stochastics
• Dominant trend lines
• Price projections
• Elliott Wave Principle
• Volatility bands
• Composite Index

Auszug. © Genehmigter Nachdruck. Alle Rechte vorbehalten.

TECHNICAL ANALYSIS FOR THE TRADING PROFESSIONAL

Strategies and Techniques for Today's Turbulent Global Financial Markets

By CONSTANCE M. BROWN

The McGraw-Hill Companies, Inc.

Copyright © 2012 Constance M. Brown
All rights reserved.

ISBN: 978-0-07-175914-4

Contents

Foreword
Acknowledgments
Disclaimer
Part | 1 DISPELLING SOME COMMON BELIEFS ABOUT INDICATORS
Chapter | 1 Oscillators Do Not Travel between 0 and 100
Chapter | 2 Dominant Trading Cycles Are Not Time Symmetrical
Chapter | 3 Choosing and Adjusting Period Setup for Oscillators
Chapter | 4 Dominant Trend Lines Are Not Always from Extreme Price Highs 
or Lows
Chapter | 5 Signals from Moving Averages Are Frequently Absent in 
Real-Time Charts
Part | 2 CALCULATING MARKET PRICE OBJECTIVES
Chapter | 6 Adjusting Traditional Fibonacci Projections for Higher 
Probability Targets
Chapter | 7 Price Projections by Reverse-Engineering Indicators
Chapter | 8 Price Objectives Derived from Positive and Negative Reversals 
in the RSI
Chapter | 9 Gann Analysis: Calculating Price and Time Objectives
Chapter | 10 Using Oscillators with the Elliott Wave Principle
Part | 3 NEW METHODS FOR IMPROVING INDICATOR TIMING AND FILTERING 
PREMATURE SIGNALS
Chapter | 11 Volatility Bands on Oscillators
Chapter | 12 The Composite Index
Chapter | 13 The Principles of Depth Perspective Applied to 
Two-Dimensional Charting
Credits
Appendix A
Appendix B
Appendix C
Index

Excerpt

CHAPTER 1

OSCILLATORS DO NOT TRAVEL BETWEEN 0 AND 100

"Why does it appear that conventional technical indicators are failing us as weapproach the twenty-first century? What has changed?" Thirteen years ago thiswas an opening which did not know the volatility changes that would be ahead.However, this method of describing oscillator movement to determine trend andentry/exits in volatile conditions has stood up to the test of time. I believestrongly that a method you favor should be able to handle market changes;therefore, the original text requires no revision. The only suggestion I wouldoffer is to stop reading occasionally and study how a 14-period RelativeStrength Index (RSI) has moved in your own charts. Take any time horizon ormarket. Study global indexes, Gold, Oil, Bonds, and Forex trend or trendlessmarkets, as the method described here will stand up to the challenge. The rangesdefined in this chapter remain valid and of value. However, the astute analystand trader will know there are times when the RSI will fail to give anydivergence warning of a coming major trend reversal. For this there is asolution: this time the chapter on the Composite Index will be fully disclosedand both the Composite Index and RSI will be displayed in more current charts.Therefore, this chapter will accurately describe the methodology for you andChapter 12 will continue the discussion in a more current marketenvironment.

I am asked these two questions by professional traders before a lecture orseminar far more frequently than any others. The implications are that thetechnical studies that brought a trader prior success have changed. Tradersemployed by major institutions throughout Europe, Asia, and the United Statesseem puzzled by this same phenomenon. The traders affected utilize both easternand western technical analysis; the problem is clearly widespread andundiscriminating. Have the indicators failed, or have the markets changed,making older methods obsolete? Neither suggestion is true. Technical analysishas proved that it will hold up to whatever the world puts in front of us. Buttechnology makes everything more tightly connected. We are waking up to the newawareness that for my country to do well, so must you. No one should look atmarkets in isolation.

How did this group become so tightly linked together when they were workingindependently with their own technical tools? All quote vendors use the samedefault variables within their analysis software; professional systems andretail software products alike still use the exact same defaults. Think aboutthat statement for a moment. Every quote system shipped to a new locationanywhere in the world with charting capabilities starts off with the exact samesetup periods and formulas. Less experienced traders rarely change these defaultvariables as they are overwhelmed with the long list of indicators available tothem by the click of a mouse button. It is all too easy to set up a chart andthen read a quick description in a manual that proclaims, "Sell your Stochasticswhen it rolls over and crosses the 80 line with divergence, and buy when youroll back up through the 20 line." In mass, the orders from the same signal pourin with instantaneous execution.

I do not fear what the professional trader might do. Nor do I have strong viewsabout market realities such as S&P programs that are triggered when the spreadbetween the S&P Cash and Futures market becomes out of line. Now programs aretriggered because the German Dax and Dow Jones Industrial Averages are out ofline. The problem is not with the professional but with the growing mass ofnovice technical traders who operate as one large institutional wildcard. Theprofessional trader who fails to move forward beyond this group is unknowinglyoperating within this new technically armed and dangerous mass. The impact ofthis new breed of mass psychology is indicator failure and capital erosion.This group cannot only be avoided but also used to the professional'sadvantage. The time has come to change conventional thinking about technicalindicators. However, the professional faces a new risk. The buzzword is "alpha."With the collapse in the financial banking sector around the world, institutionsare farming out their research to third parties. Alpha is the new model and thismodel is of little value if the majority rely on the defaults that failed themin the past.

The 1990s brought dramatic changes to the way technicians and traders applytheir tools. At the same time the need for technical analysis grew because itbecame increasingly difficult to manage the global volume of fundamental factorsand cross-market ramifications. More people continue to discover the value ofcharting techniques. However, to evolve beyond the foundations of technicalanalysis, we must change the way we utilize technical studies.

Traders still working under the premise that there are two groups of technicalindicators—indicators for trending markets like moving averages and thenindicators for nontrending markets such as the oscillators MACD, RSI, andStochastics—are now very outdated. The books that segregated indicatorsinto two primary groups are not wrong. Do not lose sight of the fact that theoriginal works provided us with the foundation on which our industry is growingtoday. The important distinction is that early books on technical analysis willeventually be viewed as classics, but traders who fail to evolve beyond theseoriginal concepts face a far less pleasant fate: extinction.

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Details zur Ausgabe

• Verlag: McGraw-Hill Education Ltd
• Erscheinungsdatum: 2011
• Sprache: Englisch
• ISBN 10: 007175914X
• ISBN 13: 9780071759144
• Einband: Gebundene Ausgabe
• Anzahl der Seiten: 450
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar