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Charting Made Simple: A Beginner's Guide to Technical Analysis

Book Description

A straightforward guide that answers investors questions and helps them develop their own charting system

The fifth book in the Wrightbooks "Made Simple" series, this book gives investors the answers they need to understand and use charting without the expense of a proprietary program. It explains such commonly used charting tools as the moving average indicator and Bollinger brands and shows readers how to combine tools and techniques into a coherent charting system that works for them.

Table of Contents

  1. Cover
  2. Table of Contents
  3. Title Page
  4. Acknowledgements
  5. Chapter 1: Introducing technical analysis
    1. Technical analysis
    2. Technical analysis versus fundamental analysis
    3. Technical analysis and market sentiment
    4. How reliable is technical analysis?
    5. Trading instruments
    6. Trading terminology
    7. Profiting in bull and bear markets
    8. Trading versus investing
    9. Investor/traders and trader/investors
    10. Return on capital
    11. Taxation considerations
    12. Stock codes
    13. Accessing technical analysis tools
    14. Charting sites
    15. Choosing a broker
    16. Chapter summary
  6. Chapter 2: Charts
    1. Price charts
    2. Types of price charts
    3. What type of chart should I use?
    4. Chapter summary
  7. Chapter 3: Trends
    1. Trends
    2. Identifying trends: best fit method
    3. Identifying trends: high–low method
    4. Channels
    5. Support and resistance levels
    6. Wedges
    7. Trend identification in a point and figure chart
    8. Trend trading strategies
    9. Interpretation of trends
    10. Chapter summary
  8. Chapter 4: Patterns
    1. Chart patterns
    2. Trend changes
    3. Trend change patterns
    4. Other patterns
    5. Fibonacci ratios
    6. Trading strategies using patterns
    7. Visual interpretation
    8. Chapter summary
  9. Chapter 5: Moving averages
    1. The purpose of moving averages
    2. The principle of moving averages
    3. Moving average time periods
    4. Single moving average strategies
    5. Two moving average strategies
    6. Multiple moving averages
    7. Chapter summary
  10. Chapter 6: Moving average convergence divergence
    1. Moving average difference
    2. The MACD indicator
    3. MACD trading strategies
    4. MACD time lag
    5. Using the MACD
    6. Chapter summary
  11. Chapter 7: Momentum
    1. Physical momentum
    2. Sharemarket momentum
    3. Momentum and trends
    4. Momentum indicator
    5. Momentum trading strategies
    6. Advantages and limitations of the momentum indicator
    7. Chapter summary
  12. Chapter 8: Relative strength index
    1. A measure of momentum
    2. Interpreting the RSI
    3. RSI trends
    4. Trading signals using the RSI
    5. Chapter summary
  13. Chapter 9: Volume
    1. Volume recap
    2. Importance of volume
    3. Volume spikes
    4. Volume and liquidity
    5. Volume and trend strength
    6. Smart money and copycat trading
    7. Market depth screen
    8. Equi-volume charts
    9. On balance volume
    10. Price–OBV divergence
    11. Reliability of volume indications
    12. Chapter summary
  14. Chapter 10: Bollinger bands
    1. Normal distribution
    2. Bollinger band calculation
    3. Charting Bollinger bands
    4. Using Bollinger bands as a trading tool
    5. Bollinger bands and volatility
    6. Share price volatility
    7. Trends and trend change indications
    8. Bollinger bands and overbought/oversold conditions
    9. Bollinger band trading signals
    10. Chapter summary
  15. Chapter 11: Money flow
    1. The money flow index
    2. Chaikin money flow
    3. Twiggs money flow
    4. A flaw with money flow indices
    5. Chapter summary
  16. Chapter 12: Your charting system
    1. Creating a trading/investing plan
    2. Technical analysis systems
    3. Charts, indicators and parameters to include
    4. Chapter summary
  17. Appendix: Chart interpretations