TECHNICAL ANALYSIS EXPLAINED 5E: The Successful Investor's Guide to Spotting Investment Trends and Turning Points - Hardcover

Pring

Hardcover

ISBN 10: 0071825177 ISBN 13: 9780071825177

Verlag: McGraw-Hill Education Ltd, 2014

Inhaltsangabe

The guide technicians turn to for answers--tuned up to provide an advantage in today's global economy The face of investing has significantly changed in the 30 years since this book's first publication, but one essential component of the markets has not--human behavior. Whether you're trading cornerstone commodities or innovative investment products, observing how investors responded to past events through technical analysis is your key to forecasting when to buy and sell in the future. This fully updated fifth edition shows you how to maximize your profits in today's complex markets by tailoring your application of this powerful tool. Tens of thousands of individual and professional investors have used the guidance in this book to grow their wealth by understanding, interpreting, and forecasting significant moves in both individual stocks and entire markets. This new edition streamlines its time-honored, profit-driven approach, while updating every chapter with new examples, tables, charts, and comments that reflect the real-world situations you encounter in everyday trading. Required reading among many professionals, this authoritative resource now features: Brand-new chapters that analyze and explain secular trends with unique technical indicators that measure investor confidence, as well as an introduction to Pring's new Special K indicator Expanded coverage on the profit-making opportunities ETFs create in international markets, sectors, and commodities Practical advice for avoiding false, contratrend signals that may arise in short-term time spans Additional material on price patterns, candlestick charts, relative strength, momentum, sentiment indicators, and global stock markets Properly reading and balancing the variety of indicators used in technical analysis is an art, and no other book better illustrates the repeatable steps you need to take to master it. When used with patience and discipline, Technical Analysis Explained, Fifth Edition, will make you a better decision maker and increase your chances of greater profits.

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

Von der hinteren Coverseite

<p><i>Technical Analysis Explained</i>, Fifth Edition, is the updated bible of technical analysis written by a renowned expert and educational pioneer in the field.Widely recognized in the investment industry as the most authoritative guide on the subject, it gives you everything you need to forecast accurately how investors will respond to future events based on how they have statistically responded in the past.</p><p>Martin Pring, described in Barron's as a "technician's technician," uses his popular straight-talk style of instruction to help all types of investors forecast price movements with reliable accuracy. Through his concentrated blend of theory and techniques, generations of investors have become better traders and gained long-term wealth. Now, this new edition shows today’s investors how to use the power of technical analysis in computerized markets with everchanging investment products.</p><p>This well-organized guide gets you started right away with:<ul><li>A step-by-step program for making technical analysis part of your investing routine</li><li>Practical strategies for using today's most sophisticated investment tools and techniques</li><li>An insider's look at the psychology of investors aimed at mastering your emotions</li></ul></p><p>Movement in stock prices, breaking business news, and regularly issued financial reports all cause traders and investors to react--and often overreact--in predictable ways. Take the guesswork out of growing your portfolioby staying ahead of those reactions, where you can both profit and protect your assets with <i>Technical Analysis Explained</i>, Fifth Edition.</p>

Auszug. © Genehmigter Nachdruck. Alle Rechte vorbehalten.

Technical Analysis Explained

THE SUCCESSFUL INVESTOR'S GUIDE TO SPOTTING INVESTMENT TRENDS AND TURNING POINTS

By MARTIN J. PRING

McGraw-Hill Education

Copyright © 2014 McGraw-Hill Education
All rights reserved.

ISBN: 978-0-07-182517-7

Contents

Preface, 
Part I: Trend-Determining Techniques, 
1. The Definition and Interaction of Trends, 
2. Financial Markets and the Business Cycle, 
3. Dow Theory, 
4. Typical Parameters for Intermediate Trends, 
5. How to Identify Support and Resistance Zones, 
6. Trendlines, 
7. Basic Characteristics of Volume, 
8. Classic Price Patterns, 
9. Smaller Price Patterns and Gaps, 
10. One- and Two-Bar Price Patterns, 
11. Moving Averages, 
12. Envelopes and Bollinger Bands, 
13. Momentum I: Basic Principles, 
14. Momentum II: Individual Indicators, 
15. Momentum III: Individual Indicators, 
16. Candlestick Charting, 
17. Point and Figure Charting, 
18. Miscellaneous Techniques for Determining Trends, 
19. The Concept of Relative Strength, 
20. Putting the Indicators Together: The DJ Transports 1990–2001, 
Part II: Market Structure, 
21. Price: The Major Averages, 
22. Price: Sector Rotation, 
23. Time: Analyzing Secular Trends for Stocks, Bonds, and Commodities, 
24. Time: Cycles and Seasonal Patterns, 
25. Practical Identification of Cycles, 
26. Volume II: Volume Indicators, 
27. Market Breadth, 
Part III: Other Aspects of Market Analysis, 
28. Indicators and Relationships That Measure Confidence, 
29. The Importance of Sentiment, 
30. Integrating Contrary Opinion and Technical Analysis, 
31. Why Interest Rates Affect the Stock Market, 
32. Using Technical Analysis to Select Individual Stocks, 
33. Technical Analysis of International Stock Markets, 
34. Automated Trading Systems, 
35. Checkpoints for Identifying Primary Stock Market Peaks and Troughs, 
Epilogue, 
Appendix: The Elliott Wave, 
Glossary, 
Bibliography, 
Index, 

CHAPTER 1

THE DEFINITION AND INTERACTION OF TRENDS

In the introduction, technical analysis was defined as the art of identifying trend changes at an early stage and to maintain an investment or trading posture until the weight of the evidence indicates that the trend has reversed. In order to identify a trend reversal, we must first know what that trend is. This chapter explains and categorizes the principal trends, and concludes with a discussion of one of the basic building blocks of technical analysis: peak-and-trough progression. This technique is arguably the simplest of trend-determining techniques, but in my book, certainly one of the most effective.

Time Frames

We have already established the link between psychology and prices. It is also a fact that human nature (psychology) is more or less constant. This means that the principles of technical analysis can be applied to any time frame, from one- minute bars to weekly and monthly charts. The interpretation is identical. The only difference is that the battle between buyers and sellers is much larger on the monthly charts than on the intraday ones. This means that such trend- reversal signals are far more significant. As we proceed, it will be evident that this book contains a huge variety of examples featuring many different time frames. For the purpose of interpretation, the time frame really doesn't matter; it's the character of the pattern that does. For example, if you are a long-term trader and see a particular example featured on a 10-minute bar chart, the principles of interpretation are the same when applied to a weekly chart. A long-term investor would never initiate an investment based on a 10-minute chart, but can and should take action when that same type of technical evidence appears on a weekly or monthly one, and vice versa.

Three Important Trends

A trend is a period in which a price moves in an irregular but persistent direction. It may also be described as a time measurement of the direction in price levels covering different time spans. There are many different classifications of trends in technical analysis. It is useful to examine the more common ones, since such an understanding will give us perspective on the significance of specific technical events. The three most widely followed trends are primary, intermediate, and short-term. Whenever we talk of any specific category of trend lasting for such and such a time period, please remember that the description offered is a rough guide encompassing most, but not all, of the possible durations for that particular type. Some specific trends will last longer, and others for less time.

Primary

The primary trend generally lasts between 9 months and 2 years, and is a reflection of investors' attitudes toward unfolding fundamentals in the business cycle. The business cycle extends statistically from trough to trough for approximately 3.6 years, so it follows that rising and falling primary trends (bull and bear markets) last for 1 to 2 years. Since building up takes longer than tearing down, bull markets generally last longer than bear markets. The direction of the secular or very long-term trend will also affect the magnitude and duration of a primary trend. Those that move in the direction of the secular trend will generally experience greater magnitude and duration than those that move in the opposite direction. The characteristics of secular trends are discussed later in this chapter and more fully in Chapter 23.

The primary trend cycle is operative for bonds, equities, and commodities. Primary trends also apply to currencies, but since they reflect investors' attitudes toward the interrelationship of two different economies, analysis of currency relationships does not fit neatly into the business cycle approach discussed in Chapter 2.

The primary trend is illustrated in Figure 1.1 by the thickest line. In an idealized situation, the primary uptrend (bull market) is the same size as the primary downtrend (bear market), but in reality, of course, their magnitudes are different. Because it is very important to position both (short-term) trades and (long-term) investments in the direction of the main trend, a significant part of this book is concerned with identifying reversals in the primary trend.

Intermediate

Anyone who has looked at prices on a chart will notice that they do not move in a straight line. A primary upswing is interrupted by several reactions along the way. These countercyclical trends within the confines of a primary bull market are known as intermediate price movements. They last anywhere from 6 weeks to as long as 9 months, sometimes even longer, but rarely shorter.

Countercyclical intermediate trends are typically very deceptive, often being founded on very believable but false assumptions. For example, an intermediate rally during a bear market in equities may very well be founded on a couple of unexpectedly positive economic numbers, which make it appear that the economy will avoid that much-feared recession. When subsequent numbers are reported and found to be wanting, the bear market resumes. Intermediate-term trends of the stock market are examined in greater detail in Chapter 4 and are shown as a thin solid line in Figure 1.1.

It is important to have an idea of the direction and maturity of the primary trend, but an analysis of...

Details zur Ausgabe

• Verlag: McGraw-Hill Education Ltd
• Erscheinungsdatum: 2014
• Sprache: Englisch
• ISBN 10: 0071825177
• ISBN 13: 9780071825177
• Einband: Gebundene Ausgabe
• Auflage: 5
• Anzahl der Seiten: 832
• Kontakt zum Hersteller: preigu GmbH & Co. KG; mail@preigu.de; ; Lengericher Landstr. 19; Osnabrück; Niedersachsen; 49078; Deutschland