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Chart Your Way to Profits: The Online Trader's Guide to Technical Analysis with ProphetCharts, Second Edition

Book Description

A cutting-edge guide to turning technical analysis into trading success,

Chart Your Way to Profits, Second Edition shows you how to use the powerful technology available online in conjunction with technical analysis to assess markets and make the most profitable trading decisions possible.

In the book, author Tim Knight discusses the key aspects of technical analysis and reveals how to design your own charts and indicators in a way that enables you to easily monitor the markets and make solid trading decisions. This new edition discusses a wider range of technical tools within ProphetCharts and shows you how to evaluate and compare industry sectors and groups of stocks to identify the best trading opportunities.

  • Features many new technical tools for tracking individual stocks

  • Illustrates how to use the highly-rated online application ProphetCharts to create state-of-art, customized graphs

  • Helps hone your own analysis skills through hundreds of real-world examples

Written in a straightforward and accessible manner, Chart Your Way to Profits, Second Edition not only explains technical analysis, but also provides readers with examples demonstrating how effective technical analysis can identify highly profitable trades.

Table of Contents

  1. Copyright
  2. Introduction
    1. SOME HISTORY
    2. HOW TO REACH ME
  3. About the Author
  4. 1. Technical Analysis
    1. 1.1. THE BULLS VERSUS THE BEARS
    2. 1.2. WHY IS A PREDICTION VALUABLE?
    3. 1.3. A WORD ON SHORTING
    4. 1.4. SUPPORT AND RESISTANCE
    5. 1.5. WHAT HAPPENS WHEN PRICES PUNCH THROUGH?
    6. 1.6. HISTORY REPEATS ITSELF
    7. 1.7. HEAD AND SHOULDERS
    8. 1.8. A BREAKOUT AND A FAILURE
    9. 1.9. A CHANGE IN DIRECTION
    10. 1.10. WHEN PATTERNS WORK TOGETHER
    11. 1.11. MORE BREAKOUTS
    12. 1.12. MORE BREAKDOWNS
    13. 1.13. CHARTING FOR YOURSELF
  5. 2. Fundamentals of Chart Creation
    1. 2.1. ARITHMETIC VERSUS LOGARITHMIC
    2. 2.2. DIFFERENT INSTRUMENTS, DIFFERENT CHARTS
    3. 2.3. LET'S START CHARTING
    4. 2.4. ZOOMING FOR A BETTER VIEW
    5. 2.5. DATA DETAILS
    6. 2.6. SEARCHING FOR SYMBOLS
    7. 2.7. OPTIONS SEARCH
    8. 2.8. FUTURES SEARCH
    9. 2.9. STREAMING CHARTS
    10. 2.10. CHARTING DIFFERENT TIME PERIODS
    11. 2.11. CLONING CHARTS
    12. 2.12. NEXT UP
  6. 3. Modules and Preferences
    1. 3.1. BASIC MODULE BEHAVIOR
    2. 3.2. THE DETAILS OF EACH MODULE
      1. 3.2.1. Quote
      2. 3.2.2. Patterns: Symbols
      3. 3.2.3. Candle Patterns: Symbols
      4. 3.2.4. Phase 1 and 2 Scores
      5. 3.2.5. Currency Pairs
      6. 3.2.6. Ratio Charts
      7. 3.2.7. My Watch Lists
      8. 3.2.8. My Portfolios
      9. 3.2.9. My Study Sets
      10. 3.2.10. My Chart Styles
      11. 3.2.11. Chart Toppers
      12. 3.2.12. Futures
      13. 3.2.13. Indices
      14. 3.2.14. Technical Studies
      15. 3.2.15. Breakout Studies
      16. 3.2.16. Quick Toggles
      17. 3.2.17. Option Controls
    3. 3.3. PREFERENCES IN PROPHETCHARTS
      1. 3.3.1. Appearance
      2. 3.3.2. Drawing
      3. 3.3.3. Italicize Items Appearing in More Than One Watch List
      4. 3.3.4. Enable Warnings
      5. 3.3.5. Show Item Counts
      6. 3.3.6. Time Zone
    4. 3.4. DRAGGING AND DROPPING
    5. 3.5. RIGHT-CLICKING FOR MORE ACTIONS
  7. 4. Watch Lists and Chart Styles
    1. 4.1. WATCH LIST BASICS
    2. 4.2. MY WATCH LISTS
    3. 4.3. DRAGGING-AND-DROPPING
    4. 4.4. RIGHT-CLICKING ON SYMBOLS
    5. 4.5. CHART STYLES
    6. 4.6. CREATING AND SAVING A STYLE
    7. 4.7. TRADING STYLE
    8. 4.8. ON TO TECHNICAL STUDIES
  8. 5. Market and Data Types
    1. 5.1. INDEXES
    2. 5.2. EQUITIES
    3. 5.3. MUTUAL FUNDS
    4. 5.4. FOREX
    5. 5.5. E-MINI FUTURES
    6. 5.6. FUTURES AND COMMODITIES
    7. 5.7. OPTIONS
    8. 5.8. OPTION CONTROLS
  9. 6. Indicators in Action
    1. 6.1. SINGLE VERSUS MULTIPLE INDICATORS
    2. 6.2. MOVING AVERAGES
    3. 6.3. BOLLINGER BANDS
    4. 6.4. THE RIBBON STUDY
    5. 6.5. LINEAR REGRESSION CHANNEL
    6. 6.6. PARABOLIC STOP AND REVERSAL (PSAR)
    7. 6.7. MACD INDICATOR
    8. 6.8. RELATIVE STRENGTH INDEX (RSI)
  10. 7. Multiple Studies and Comparisons
    1. 7.1. THE TECHNICAL STUDIES EDITOR
    2. 7.2. EDITING A STUDY
    3. 7.3. WORKING WITH PANES
    4. 7.4. DELETING STUDIES AND PANES
    5. 7.5. CROSSOVERS AND MULTIPLE STUDIES
    6. 7.6. SAVING STUDY SETS
    7. 7.7. COMPARING CHARTS
    8. 7.8. THE LEFT-SCALE AXIS
    9. 7.9. SUMMARY
  11. 8. Trendlines and Reversals
    1. 8.1. USING THE TOOL
    2. 8.2. CHANGING COLOR AND STYLE
    3. 8.3. HISTORICAL CHART EXAMPLES
    4. 8.4. RESISTANCE
    5. 8.5. BREAKS TO THE DOWNSIDE
    6. 8.6. SUPPORT BECOMES RESISTANCE
    7. 8.7. PARALLEL TRENDLINES
    8. 8.8. FALSE BREAKOUTS
    9. 8.9. MULTIPLE TRENDLINES OVER THE LONG HAUL
    10. 8.10. INTERPRETING AMBIGUITY
    11. 8.11. SUMMARY
  12. 9. Expansion and Channels
    1. 9.1. RESIZING AND EXPANSION
    2. 9.2. WHY RESIZE?
    3. 9.3. PARALLEL LINES
    4. 9.4. BREAKDOWNS AND BREAKOUTS
    5. 9.5. SUMMARY
  13. 10. Rounded Tops and Saucers
    1. 10.1. PRICE PULLBACKS
    2. 10.2. PRICE FAILURE
    3. 10.3. SAUCER BOTTOMS
    4. 10.4. ROUNDED TOP PATTERNS
    5. 10.5. PATTERN FAILURES AND BREAKDOWNS
    6. 10.6. SUMMARY
  14. 11. Cup with Handle
    1. 11.1. USING THE HORIZONTAL LINE TOOL
    2. 11.2. MORE CUP WITH HANDLE EXAMPLES
    3. 11.3. PATTERN FAILURES
    4. 11.4. DIAMONDS AND DEAD-CAT BOUNCES
  15. 12. Multiple Tops and Bottoms
    1. 12.1. HIGHLIGHTING CHARTS
    2. 12.2. ADDING TEXT NOTES
    3. 12.3. HIGHER HIGHS AND HIGHER LOWS
    4. 12.4. MULTIPLE TOPS
    5. 12.5. MULTIPLE BOTTOMS
    6. 12.6. SUMMARY
  16. 13. Head and Shoulders
    1. 13.1. THE HEAD AND SHOULDERS PATTERN
    2. 13.2. A CLOSE-UP VIEW OF BRCM's H&S PATTERN
    3. 13.3. THE IMPORTANCE OF THE NECKLINE
    4. 13.4. USING RETRACEMENTS
    5. 13.5. MORE ON THE HEAD AND SHOULDERS PATTERN
    6. 13.6. TRADING ON THE H&S PATTERN
    7. 13.7. THE INVERTED HEAD AND SHOULDERS PATTERN
    8. 13.8. SUMMARY
  17. 14. Pattern Recognition
    1. 14.1. HOW TO FIND PATTERNS
    2. 14.2. WORKING WITH THE RESULTS
    3. 14.3. PATTERN FAILURES
    4. 14.4. GRIDS AND EXPORTING
    5. 14.5. CANDLESTICK PATTERNS
  18. 15. Fibonacci Drawings
    1. 15.1. A BRIEF HISTORY LESSON
    2. 15.2. THE FIBONACCI RETRACEMENT
    3. 15.3. FIBONACCI FANS
    4. 15.4. FIBONACCI ARCS
    5. 15.5. FIBONACCI TIME ZONES
    6. 15.6. COMBINING OBJECTS
    7. 15.7. SUMMARY
  19. 16. Power Features
    1. 16.1. LABELS
    2. 16.2. GRID CHARTS
    3. 16.3. RATIO CHARTS
    4. 16.4. HIDING ELEMENTS
    5. 16.5. UPSIDE-DOWN CHARTS
    6. 16.6. MORE TO COME
  20. 17. For Bears Only
    1. 17.1. THE PHILOSOPHY OF SHORTING
    2. 17.2. PRACTICAL GUIDE TO SHORT-SELLING
    3. 17.3. EXCHANGE-TRADED FUNDS
    4. 17.4. PUTS FOR LEVERAGED PROFITS
    5. 17.5. GOOD AND EVIL
      1. 17.5.1. Self-Perception
      2. 17.5.2. Is Heroism Chosen?
      3. 17.5.3. What Does This Have to Do with Trading?
      4. 17.5.4. Creation and Destruction
      5. 17.5.5. The Amorality of Trading
    6. 17.6. THE SLOPE OF HOPE
  21. 18. A Practical Guide to Trading
    1. 18.1. TRADING RULES
    2. 18.2. HOW TO OPEN A POSITION
      1. 18.2.1. Don't Enter a Trade in the First 30 Minutes of the Day
      2. 18.2.2. Pay a Good Price
      3. 18.2.3. Trade Only Active Securities
      4. 18.2.4. Have a Stop and Target Determined in Advance
      5. 18.2.5. Trade Only Based on Completed Patterns
    3. 18.3. HOW TO HOLD A POSITION
      1. 18.3.1. Let the Winners Run
      2. 18.3.2. Let Your Stops Manage Your Losers
      3. 18.3.3. Keep Your Stops Updated
    4. 18.4. HOW TO CLOSE A POSITION
    5. 18.5. TIME AND MONEY
    6. 18.6. THERE IS NO HOLY GRAIL
    7. 18.7. CHARTING YOUR WAY TO PROFITS
  22. A. The Kirk Report Interview
    1. A.1. Q&A WITH TIM KNIGHT
  23. B. MarketMatrix
    1. B.1. PORTFOLIO INTEGRATION