1 Philosophy of Technical Analysis
Technical versus Fundamental Forecasting
Flexibility and Adaptability of Technical Analysis
Technical Analysis Applied to Different Trading Mediums
Technical Analysis Applied to Different Time Dimensions
A Brief Comparison of Technical Analysis in Stocks and Futures
Less Reliance on Market Averages and Indicators
Some Criticisms of the Technical Approach
The Use of Closing Prices and the Presence of Lines
Dow Theory Applied to Futures Trading
Arithmetic versus Logarithmic Scale
Construction of the Daily Bar Chart
Trend Has Three Classifications
The Importance of the Number Three
The Relative Steepness of the Trendline
Two Types of Patterns: Reversal and Continuation
The Head and Shoulders Reversal Pattern
The Inverse Head and Shoulders
Complex Head and Shoulders Patterns
Variations from the Ideal Pattern
The Continuation Head and Shoulders Pattern
Volume and Open Interest as Secondary Indicators
Interpretation of Volume for All Markets
Interpretation of Open Interest in Futures
Summary of Volume and Open Interest Rules
Combine Option Sentiment With Technicals
The Importance of Longer Range Perspective
Construction of Continuation Charts for Futures
Long Term Trends Dispute Randomness
Patterns on Charts: Weekly and Monthly Reversals
Long Term to Short Term Charts
Why Should Long Range Charts Be Adjusted for Inflation?
Long Term Charts Not Intended for Trading Purposes
The Moving Average: A Smoothing Device with a Time Lag
Using Bollinger Bands as Targets
Band Width Measures Volatility
Moving Averages Tied to Cycles
Fibonacci Numbers Used as Moving Averages
Moving Averages Applied to Long Term Charts
Alternatives to the Moving Average
10 Oscillators and Contrary Opinion
Oscillator Usage in Conjunction with Trend
Measuring Rate of Change (ROC)
Constructing an Oscillator Using Two Moving Averages
The Relative Strength Index (RSI)
Using the 70 and 30 Lines to Generate Signals
When Oscillators are Most Useful
Moving Average Convergence/Divergence (MACD)
The Principle of Contrary Opinion in Futures
Investors Intelligence Numbers
The Point and Figure Versus the Bar Chart
Construction of the Intraday Point and Figure Chart
3 Box Reversal Point and Figure Charting
Construction of the 3 Point Reversal Chart
Advantages of Point and Figure Charts
Basic Tenets of the Elliott Wave Principle
Connection Between Elliott Wave and Dow Theory
Fibonacci Numbers as the Basis of the Wave Principle
Fibonacci Ratios and Retracements
Combining All Three Aspects of Wave Theory
Elliott Wave Applied to Stocks Versus Commodities
How Cyclic Concepts Help Explain Charting Techniques
Combining Cycles with Other Technical Tools
Maximum Entropy Spectral Analysis
15 Computers and Trading Systems
Using the Tools and Indicators
Welles Wilder’s Parabolic and Directional Movement Systems
Pros and Cons of System Trading
Test Systems or Create Your Own
16 Money Management and Trading Tactics
The Three Elements of Successful Trading
Trading Multiple Positions: Trending versus Trading Units
What to Do After Periods of Success and Adversity
Combining Technical Factors and Money Management
From Daily Charts to Intraday Price Charts
The Use of Intraday Pivot Points
Summary of Money Management and Trading Guidelines
Managed Accounts and Mutual Funds
17 The Link Between Stocks and Futures: Intermarket Analysis
Program Trading: The Ultimate Link
The Link Between Bonds and Stocks
The Link Between Bonds and Commodities
The Link Between Commodities and the Dollar
Stock Sectors and Industry Groups
Intermarket Analysis and Mutual Funds
Relative Strength and Individual Stocks
Intermarket Neural Network Software
19 Pulling It All Together—A Checklist
How to Coordinate Technical and Fundamental Analysis
Chartered Market Technician (CMT)
Market Technicians Association (MTA)
The Global Reach of Technical Analysis
Technical Analysis by Any Name
Federal Reserve Finally Approves
A Advanced Technical Indicators
Starc Bands and Keltner Channels
Market Profile Organizing Principles
Range Development and Profile Patterns
Tracking Longer Term Market Activity
C The Essentials of Building a Trading System
Step 1: Start with a Concept (an Idea)
Step 2: Turn Your Idea into a Set of Objective Rules
Step 3: Visually Check It Out on the Charts
Step 4: Formally Test It with a Computer
D Continuous Futures Contracts