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Technical Analysis: The Complete Resource for Financial Market Technicians

Book Description

Now, there's a comprehensive, objective, and reliable tutorial and reference for the entire field of technical analysis. For traders, researchers, and serious investors alike, this is the definitive book on technical analysis. Individual investors and professional investment managers are increasingly recognizing the value of technical analysis in identifying trading opportunities. Moreover, the SECs requirement for analysts and brokers to pass Section 86 exams can now be fulfilled with the Chartered Market Technician (CMT) certification.

Author Charles D. Kirkpatrick II has spent decades using technical analysis to advise major investing institutions -- and he currently teaches the subject to MBA candidates, giving him unique insight into the best ways of explaining its complex concepts. Together with university finance instructor and CMT Dr. Julie Dahlquist, Kirkpatrick systematically explains the theory of technical analysis, presenting academic evidence both for and against it. Using 200+ illustrations, the authors explain the analysis of markets and individual issues, and present a complete investment system and portfolio management plan. Readers will learn how to use tested sentiment, momentum indicators, seasonal affects, flow of funds, and many other techniques. The authors reveal which chart patterns and indicators have been reliable; show how to test systems; and demonstrate how technical analysis can be used to mitigate risk.

Table of Contents

  1. Copyright
    1. Dedication
  2. FT Press: Financial Times
  3. Acknowledgments
  4. About the Authors
  5. I. Introduction
    1. 1. Introduction to Technical Analysis
    2. 2. The Basic Principle of Technical Analysis—The Trend
      1. How Does the Technical Analyst Make Money?
      2. What Is a Trend?
      3. How Are Trends Identified?
      4. Why Do Markets Trend?
      5. What Trends Are There?
      6. What Other Assumptions Do Technical Analysts Make?
      7. Conclusion
        1. Review Questions
    3. 3. History of Technical Analysis
      1. Early Financial Markets and Exchanges
      2. Modern Technical Analysis
      3. Current Advances in Technical Analysis
    4. 4. The Technical Analysis Controversy
      1. Do Markets Follow a Random Walk?
        1. Fat Tails
        2. Drawdowns
        3. Proportions of Scale
      2. Can Past Patterns Be Used to Predict the Future?
      3. What About Market Efficiency?
        1. New Information
        2. Are Investors Rational?
        3. Will Arbitrage Keep Prices in Equilibrium?
      4. Behavioral Finance and Technical Analysis
      5. Pragmatic Criticisms of Technical Analysis
      6. What Is the Empirical Support for Technical Analysis?
      7. Conclusion
      8. Review Questions
  6. II. Markets and Market Indicators
    1. 5. An Overview of Markets
      1. In What Types of Markets Can Technical Analysis Be Used?
      2. Types of Contracts
        1. Cash Market
        2. Futures Markets
        3. Options Markets
      3. How Does a Market Work?
      4. Who Are the Market Players?
      5. How Is the Market Measured?
        1. Price-Weighted Average
      6. Market Capitalization Weighted Average
      7. Equally Weighted (or Geometric) Average
      8. Conclusion
      9. Review Questions
    2. 6. Dow Theory
      1. Dow Theory Theorems
        1. The Primary Trend
        2. The Secondary Trend
        3. The Minor Trend
        4. Concept of Confirmation
        5. Importance of Volume
      2. Criticisms of the Dow Theory
      3. Conclusion
      4. Review Questions
    3. 7. Sentiment
      1. What Is Sentiment?
      2. Market Players and Sentiment
      3. How Does Human Bias Affect Decision Making?
      4. Crowd Behavior and the Concept of Contrary Opinion
      5. How Is Sentiment of Uninformed Players Measured?
        1. The Concept of Sentiment Indicators
        2. Sentiment Indicators Based on Options and Volatility
          1. Option Trading and Sentiment
          2. Using Put-Call Ratios to Gauge Sentiment
          3. Volatility and Sentiment
          4. Using Volatility to Measure Sentiment
          5. Combining Put/Call Ratio and Volatility
        3. Polls
          1. Advisory Opinion
          2. American Association of Individual Investors
          3. Consensus Bullish Sentiment Index
          4. Market Vane
          5. The Sentix Index
          6. Consumer Confidence Index
        4. Other Measures of Contrary Opinion
          1. Buying and Selling Climaxes
          2. Mutual Fund Statistics
            1. Mutual Fund Cash as a Percentage of Assets
          3. Rydex Funds
          4. Wall Street Strategists
          5. Brokerage Firm Hiring
          6. Margin Balances
          7. Relative Volume
          8. Uninformed Short Selling
        5. Unquantifiable Contrary Indicators
        6. Historical Indicators
      6. How Is the Sentiment of Informed Players Measured?
        1. Insiders
        2. Sell/Buy Ratio
          1. Investors Intelligence Method
          2. New York Stock Exchange Member and Nonmember Transactions
            1. Public (Nonmember) Short Sale Ratio
            2. Public to Specialist Short Sale Ratio
            3. Specialist Short Sale Ratio (Not to Be Confused with the Short Sale Ratios Mentioned Earlier)
          3. Large Blocks
          4. Commitment of Traders (COT) Reports
      7. Sentiment in Other Markets
        1. Treasury Bond COT Data
        2. Treasury Bond Primary Dealer Positions
        3. Bond Market Fear Index
        4. T-Bill Rate Expectations by Money Market Fund Managers
      8. Conclusion
      9. Review Questions
    4. 8. Measuring Market Strength
      1. Market Breadth
        1. The Breadth Line or Advance-Decline Line
        2. The Advance-Decline Line Moving Average
        3. One-Day Change in the Advance-Decline Line
          1. Breadth Disparity Index
        4. Breadth Differences
          1. Haurlan Index
          2. McClellan Oscillator
          3. McClellan Ratio-Adjusted Oscillator
            1. McClellan Summation
            2. Plurality Index
        5. Breadth Ratios
          1. Advance-Decline Ratio
          2. Hughes Breadth Oscillator
          3. Absolute Breadth Index
          4. Unchanged Issues Index
        6. Breadth Thrust
        7. Summary of Breadth Indicators
      2. Up and Down Volume Indicators
        1. The Arms Index
          1. Modified Arms Index
        2. Ninety Percent Downside Days (NPDD)
      3. Net New Highs and Net New Lows
        1. New Highs Versus New Lows
        2. High Low Logic Index
        3. Hindenburg Omen
      4. Number of Stocks Above Their 30-Week Moving Average
      5. Very Short-Term Indicators
        1. Breadth and New Highs to New Lows
        2. Arms Index
        3. Net Ticks
      6. Conclusion
      7. Review Questions
    5. 9. Temporal Patterns and Cycles
      1. Periods Longer than Four Years
        1. Kondratieff Waves, or K-Waves
      2. 34-Year Historical Cycles
      3. Decennial Pattern
      4. Periods of Four Years or Less
        1. Four-Year or Presidential Cycle
        2. Election Year Pattern
        3. Seasonal Patterns
      5. January Signals
        1. January Barometer
        2. January Effect
      6. Events
      7. Conclusion
      8. Review Questions
    6. 10. Flow of Funds
      1. Funds in the Marketplace
        1. Money Market Funds
        2. Margin Debt
        3. Public Offerings
      2. Funds Outside the Security Market
        1. Household Financial Assets
        2. Money Supply
          1. Signals Using M2 Relative to Its 12–Month Moving Average
        3. Bank Loans
      3. The Cost of Funds
        1. Short–Term Interest Rates
        2. Misery Index
        3. Boucher’s T–Bill Rate of Change Rule
        4. Zweig’s Prime Rate Indicator
      4. Fed Policy
        1. Predicting Federal Reserve Policy Changes
          1. Fed Policy Futures
          2. The Greenspan Model
        2. Zweig’s Fed Indicator
        3. Three Steps and a Stumble
        4. Two Tumbles and a Jump
        5. Long–Term Interest Rates (or Inversely, the Bond Market)
        6. Yield Curve
      5. Conclusion
      6. Review Questions
  7. III. Trend Analysis
    1. 11. History and Construction of Charts
      1. History of Charting
      2. What Data Is Needed to Construct a Chart?
      3. What Types of Charts Do Analysts Use?
        1. Early Charts
        2. Line Charts
        3. Bar Charts
        4. Candlestick Charts
      4. What Type of Scale Should Be Used?
        1. Arithmetic Scale
        2. Semi–Logarithmic Scale
      5. Point–and–Figure Charts
        1. One–Box (Point) Reversal
        2. Box Size
        3. Multi–Box Reversal
        4. Time
        5. Arithmetic Scale
        6. Logarithmic Scale
      6. Conclusion
      7. Review Questions
    2. 12. Trends—The Basics
      1. Trend—The Key to Profits
      2. Trend Terminology
      3. Basis of Trend Analysis—Dow Theory
      4. How Does Investor Psychology Impact Trends?
      5. How Is the Trend Determined?
        1. Peaks and Troughs
      6. Determining a Trading Range
        1. What Is a Trading Range?
        2. What Is Support and Resistance?
        3. Why Do Support and Resistance Occur?
        4. What About Round Numbers?
        5. How Are Important Reversal Points Determined?
          1. DeMark or Williams Method
          2. Percentage Method
          3. Gann Two-Day Swing Method
          4. High Volume Method
          5. How Are Support and Resistance Zones Drawn?
        6. How Do Analysts Use Trading Ranges?
          1. Range Trading
          2. Breakout Trading
      7. Directional Trends (Up and Down)
        1. What Is a Directional Trend?
        2. How Is an Uptrend Spotted?
          1. Using a Regression Line
          2. Using Trend Lines
          3. Scale and Trend Lines
          4. Accelerating Trend Lines
          5. Decelerating Trend Lines
          6. General Rules for Trend Lines
        3. Channels
        4. Internal Trend Lines
        5. Retracements
        6. Pullbacks and Throwbacks
      8. Other Types of Trend Lines
        1. Trend Lines on Point-and-Figure Charts
        2. Speed Lines
        3. Andrews Pitchfork
      9. Conclusion
      10. Review Questions
    3. 13. Breakouts, Stops, and Retracements
      1. Breakouts
        1. What Is a Breakout?
        2. How Is Breakout Confirmed?
        3. Techniques
          1. Close Filter
          2. Point or Percent Filter
          3. Time
          4. Volume
          5. Volatility
          6. Pivot Point Technique
        4. Can a Breakout Be Anticipated?
      2. Stops
        1. What Are Entry and Exit Stops?
        2. Changing Stop Orders
        3. What Are Protective Stops?
        4. What Are Trailing Stops?
          1. Trailing Stops Using a Trend Line
          2. Trailing Stops Using Parabolic SAR
          3. Trailing Stops Using Percentage of Gain
        5. What Are Time Stops?
        6. What Are Money Stops?
        7. How Can Stops Be Used with Breakouts?
        8. Using Stops When Gaps Occur
        9. Waiting for Retracement
        10. Calculating a Risk/Return Ratio for Breakout Trading
        11. Placing Stops for a False (or “Specialist”) Breakout
      3. Conclusion
      4. Review Questions
    4. 14. Moving Averages
      1. What Is a Moving Average?
      2. How Is a Simple Moving Average Calculated?
        1. Length of Moving Average
        2. Using Multiple Moving Averages
      3. What Other Types of Moving Averages Are Used?
        1. The Linearly Weighted Moving Average (LWMA)
        2. The Exponentially Smoothed Moving Average (EMA)
        3. Wilder Method
        4. Geometric Moving Average (GMA)
        5. Triangular Moving Average
        6. Variable EMAs
      4. Strategies for Using Moving Averages
        1. Determining Trend
        2. Determining Support and Resistance
        3. Determining Price Extremes
        4. Giving Specific Signals
      5. What Is Directional Movement?
        1. Constructing Directional Movement Indicators
        2. Using Directional Movement Indicators
      6. What Are Envelopes, Channels, and Bands?
        1. Percentage Envelopes
        2. Bands
          1. Bollinger Band
          2. Keltner Band
          3. STARC Band
        3. Trading Strategies Using Bands and Envelopes
        4. Channel
      7. Conclusion
      8. Review Questions
  8. IV. Chart Pattern Analysis
    1. 15. Bar Chart Patterns
      1. What is a Pattern?
        1. Common Pattern Characteristics
          1. Entry and Exit
            1. Fractal
            2. Pullbacks and Throwbacks
            3. Failures
            4. Traps
      2. Do Patterns Exist?
        1. Behavioral Finance and Pattern Recognition
      3. Computers and Pattern Recognition
      4. Market Structure and Pattern Recognition
      5. Bar Charts and Patterns
      6. How Profitable Are Patterns?
      7. Classic Bar Chart Patterns
        1. Double Top and Double Bottom
          1. Description
          2. Performance
          3. Failure
        2. Rectangle (Also “Trading Range” or “Box”)
          1. Description
          2. Performance
          3. Failures
        3. Triple Top and Triple Bottom
          1. Description
        4. Standard Triangles—Descending, Ascending, and Symmetrical
        5. Descending Triangle
          1. Description
          2. Performance
          3. Failure
        6. Ascending Triangle
          1. Description
          2. Performance
          3. Failure
        7. Symmetrical Triangle (Also “Coil” or “Isosceles Triangle”)
          1. Performance
          2. Failure
        8. Broadening Patterns
        9. Diamond Top
          1. Description
          2. Performance
          3. Failure
        10. Wedge and Climax
          1. Description
          2. Performance
          3. Failure
        11. Patterns with Rounded Edges—Rounding and Head and Shoulders
          1. Rounding Top, Rounding Bottom (Also “Saucer,” “Bowl,” or “Cup”)
            1. Description
            2. Performance
          2. Head and Shoulders
            1. Description
            2. Performance
            3. Failure
          3. Shorter Continuation Trading Patterns—Flags and Pennants (Also “Half-Mast Formation”)
            1. Description
            2. Failure
      8. Long-Term Bar Chart Patterns with the Best Performance and the Lowest Risk of Failure
      9. Conclusion
      10. Review Questions
    2. 16. Point-and-Figure Chart Patterns
      1. What Is Different About a Point-and-Figure Chart?
        1. Time and Volume Omitted
        2. Continuous Price Flow Necessary
        3. “Old” and “New” Methods
      2. History of Point-and-Figure Charting
      3. One-Box Reversal Point-and-Figure Charts
        1. Consolidation Area on the One-Box Chart (Also “Congestion Area”)
        2. Trend Lines in One-Box Charts
        3. The Count in a One-Point Chart
        4. Head and Shoulders
        5. The Fulcrum
        6. Action Points
      4. Three-Point (or Box) Reversal Point-and-Figure Charts
        1. Trend Lines with Three-Box Charts
        2. The Count Using Three-Box Reversal Charts
          1. Calculating Horizontal Count
          2. Calculating Vertical Count
        3. The Eight Standard Patterns for Three-Box Reversal Charts
          1. Double Top and Double Bottom
          2. Rising Bottom and Declining Top
          3. Triple Top and Triple Bottom
          4. Ascending Triple Top and Descending Triple Bottom (Also “Diagonal” Triple Top or Bottom)
          5. Spread Triple Top and Spread Triple Bottom
          6. Triangle
          7. Rising Trend Lines
          8. Declining Trend Lines
        4. Other Patterns
          1. Catapult
          2. Spike (Also “Long Tail”)
          3. Shakeout
      5. Conclusion
      6. Review Questions
    3. 17. Short–Term Patterns
      1. Pattern Construction And Determination
      2. Traditional Short–Term Patterns
        1. Gaps
          1. Breakaway (or Breakout) Gaps
          2. Opening Gap
          3. Runaway Gaps (or Measuring Gaps)
          4. Exhaustion Gaps
          5. Other Minor Gaps
        2. Spike (or Wide–Range or Large–Range Bar)
        3. Dead Cat Bounce (DCB)
        4. Island Reversal
        5. One– and Two–Bar Reversal Patterns
          1. One–Bar Reversal (Also Reversal Bar, Climax, Top or Bottom Reversal Bar, Key Reversal Bar)
          2. Two–Bar Reversal (Also Pipe Formation)
          3. Horn Pattern
          4. Two–Bar Breakout
          5. Inside Bar
          6. Hook Reversal Day
          7. Naked Bar Upward Reversal
          8. Hikkake
          9. Outside Bar
        6. Multiple Bar Patterns
          1. Trend Correction
          2. Oops!
          3. Shark
          4. Volatility Patterns
          5. Wide–Range Bar
          6. Narrow–Range Bar (NR)
        7. VIX
        8. Intraday Patterns
          1. Opening Range
      3. Summary of Short–Term Patterns
      4. Candlestick Patterns
        1. One– and Two–Bar Candlestick Patterns
          1. Doji
          2. Windows
          3. Harami
          4. Hammer and Hanging Man
          5. Shooting Star and Inverted Hammer
          6. Engulfing
          7. Dark Cloud Cover and Piercing Line
        2. Multiple Bar Patterns
          1. Morning and Evening Star
          2. Three Black Crows and Three White Soldiers
          3. Three Inside Up and Three Inside Down
          4. Three Outside Up and Three Outside Down
      5. Conclusion
      6. Review Questions
  9. V. Trend Confirmation
    1. 18. Confirmation
      1. Volume Confirmation
        1. What Is Volume?
        2. How Is Volume Portrayed?
          1. Bar/Candle
          2. Equivolume
          3. Point-and-Figure
        3. Do Volume Statistics Contain Valuable Information?
        4. How Are Volume Statistics Used?
        5. Which Indexes and Oscillators Incorporate Volume?
          1. Volume-Related Indexes
            1. On-Balance-Volume (OBV)
            2. Price and Volume Trend
            3. Williams Variable Accumulation Distribution (WVAD)
            4. Accumulation Distribution (AD)
            5. Williams Accumulation Distribution (WAD)
        6. Volume-Related Oscillators
          1. Volume Oscillator
          2. Chaikin Money Flow
          3. Twiggs Money Flow
          4. Chaikin Oscillator
          5. Money Flow Index (Oscillator)
          6. Elder Force Index
          7. Other Volume Oscillators
        7. Volume Spikes
          1. Volume Spike on Breakout
          2. Volume Spike and Climax
        8. Examples of Volume Spikes
          1. Shock Spiral
          2. Volume Price Confirmation Indicator (VPCI)
          3. Volume Dips
      2. Open Interest
        1. What Is Open Interest?
        2. Open Interest Indicators
          1. Herrick Payoff Index (Oscillator)
          2. Other Open Interest Indicators
      3. Price Confirmation
        1. What Is Momentum?
        2. How Successful Are Momentum Indicators?
        3. Specific Indexes and Oscillators
          1. Moving Average Convergence-Divergence (MACD)
          2. Rate of Change (ROC)
          3. Relative Strength Index (RSI)
          4. Stochastic Oscillator
          5. Other Oscillators, Similar to the Stochastics
            1. Williams %R
            2. Commodity Channel Index (CCI)
          6. Similarities Between Oscillators
          7. Combinations—Determining Trend and Trading Range
            1. Popsteckle
            2. Holy Grail
      4. Conclusion
      5. Review Questions
  10. VI. Other Technical Methods and Rules
    1. 19. Cycles
      1. What Are Cycles?
        1. Other Aspects of Cycle Analysis
          1. Accuracy
          2. Harmonics
          3. Inversions
          4. Translation
      2. How Can Cycles Be Found in Market Data?
        1. Fourier Analysis (Spectral Analysis)
        2. Maximum Entropy Spectral Analysis
        3. Simpler (and More Practical) Methods
          1. Observation
          2. Detrending
          3. Centered Moving Averages
          4. Envelopes
      3. Projections
        1. Projecting Period
        2. Projecting Amplitude
          1. Half-Cycle Reversal
          2. The FLD and Centered Moving Average Crossovers (The “Forward Line”)
          3. The Tillman Method
          4. Concept of Commonality
      4. Conclusion
      5. Review Questions
    2. 20. Elliott, Fibonacci, and Gann
      1. Elliott Wave Theory (EWT)
        1. Ralph Nelson Elliott
        2. Basic Elliott Wave Theory
        3. Impulse Waves
          1. Basic Rules
          2. Impulse
          3. Diagonals
          4. Truncation
        4. Corrective Waves
          1. Zigzags
          2. Flats
          3. Triangles
        5. Guidelines and General Characteristics in EWT
          1. Alternation
          2. Equality
          3. Channeling
        6. Projected Targets and Retracements
        7. Alternatives to EWT
        8. Using EWT
      2. The Fibonacci Sequence
        1. Fibonacci
        2. The Fibonacci Sequence
        3. The Golden Ratio
        4. Price and Time Targets
        5. W. D. Gann
      3. Conclusion
      4. Review Questions
  11. VII. Selection
    1. 21. Selection of Markets and Issues: Trading and Investing
      1. Which Issues Should I Select for Trading?
        1. Choosing Between Futures Markets and Stock Markets
          1. Costs
          2. Risk
          3. Suitability
          4. Time Horizon
          5. Volatility
          6. Liquidity
          7. Volume
      2. Which Issues Should I Select for Investing?
      3. Top-Down Analysis
        1. Secular Emphasis
        2. Cyclical Emphasis
          1. U.S. Dollar and Industrial Raw Material Prices
          2. Industrial Raw Material Prices and Long-Term Interest Rates
          3. Bond Market and Stock Market
          4. Stock Market and the U.S. Dollar
          5. Implications of Intermarket Analysis
        3. Stock Market Industry Sectors
      4. Bottom Up—Specific Stock Selection and Relative Strength
        1. Relative Strength
        2. Academic Studies of Relative Strength
        3. Measuring Relative Strength
          1. Percentage Change Method
          2. Alpha Method
          3. Trend Slope Method
          4. Levy Method
      5. Examples of How Selected Professionals Screen for Favorable Stocks
        1. The William O’Neil CANSLIM Method
        2. James P. O’Shaughnessy Method
        3. Charles D. Kirkpatrick Method
        4. Value Line Method
        5. Richard D. Wyckoff Method
      6. Conclusion
      7. Review Questions
  12. VIII. System Testing and Management
    1. 22. System Design and Testing
      1. Why Are Systems Necessary?
        1. Discretionary Versus Nondiscretionary Systems
          1. Benefits of a Nondiscretionary, Mechanical System
          2. Pitfalls to a Nondiscretionary, Mechanical System
      2. How Do I Design a System?
        1. Requirements for Designing a System
        2. Understanding Risk
        3. Initial Decisions
        4. Types of Technical Systems
          1. Trend Following
            1. Moving Average Systems
            2. Breakout Systems
            3. Problems with Trend-Following Systems
          2. Pattern Recognition Systems
          3. Counter-Trend Systems
          4. Exogenous Signal Systems
          5. Which System Is Best?
      3. How Do I Test a System?
        1. Data
          1. Special Data Problems for Futures Systems
          2. Testing Methods and Tools
          3. Test Parameter Ranges
      4. Optimization
        1. Methods of Optimizing
          1. Whole Sample
          2. Out-of-Sample Optimization (OOS)
          3. Walk Forward Optimization
        2. Optimization and Screening for Parameters
        3. Measuring System Results for Robustness
          1. Components
          2. Profit Measures
          3. Risk Measures
          4. Smoothness and the Equity Curve
      5. Conclusion
      6. Review Questions
    2. 23. Money and Risk Management
      1. Risk and Money Management
      2. Testing Money Management Strategies
      3. Money Management Risks
        1. Defining Risk
        2. Concepts
          1. Drawdown and Maximum Drawdown
          2. Theory of Runs
          3. Martingale Betting System
        3. Reward to Risk
        4. Normal Risks
          1. Position Size
          2. Number of Shares or Contracts
          3. Determining Optimal Position Size
            1. Risk of Ruin Formula
            2. Theory of Runs
            3. Optimal f and the Kelly Formula
          4. Final Position Size
          5. Initial Capital
          6. Leverage
          7. Pyramiding
        5. Unusual Risks
          1. Psychological Risk
          2. Knowledge of the Market
          3. Diversifiable Risk
          4. Trade Frequency
          5. Temporal
          6. Security Quality
      4. Money Management Risk Strategies
        1. Exit Strategies
          1. Protective Stop
            1. Hard Money or Dollar Stop
            2. Maximum Winning Adverse Excursion
          2. Trailing Stop
            1. Breakeven Level and Breakeven Stop
            2. Technical Point Versus Money Point
            3. Volatility Stop
          3. Other Trailing Stops
            1. Maximum Winning Favorable
            2. Trend Line
            3. Adaptive
          4. Other Kinds of Stops
            1. Signal
            2. Time
            3. Targets
            4. Execution
      5. Monitoring Systems and Portfolios
      6. If Everything Goes Wrong
      7. Conclusion
      8. Review Questions
  13. IX. Appendixes
    1. A. Basic Statistics
      1. Returns
      2. Probability and Statistics
      3. Descriptive Statistics
        1. Measures of Central Tendency
          1. Mean
          2. Median
          3. Mode
          4. Geometric Mean
        2. Measures of Dispersion
        3. Relationships Between Variables
      4. Inferential Statistics
      5. Modern Portfolio Theory
      6. Performance Measurement
      7. Advanced Statistical Methods
      8. Artificial Intelligence
      9. Review Questions
    2. B. Types of Orders and Other Trader Terminology
      1. An Order Ticket
    3. Bibliography