Full View Integrated Technical Analysis is a new approach for the experienced Technical Analyst. Xin Xie has created a system that provides a full picture of market moving forces and offers unabridged coverage of market dynamics, helping you to understand the overall working of the market, rather than just capture independent trading opportunities.
Introduction:
Given the unexploited potential and the unsatisfactory state of the existing approaches to technical analysis, the way forward is clear. In order to reduce the rate of failures, we need to understand the reasons for the forecasting errors generated by the indicators and use the indicators conditionally in the absence of the factors causing the failures, rather than unconditionally. In addition, we need to explore the joint power of different indicators as well as harvest the combined wisdom of technical analysis and fundamental analysis.
As it turns out, the two roads lead to one destination—a broad understanding of market dynamics rather than a narrow focus on isolated individual patterns. For a broad understanding of market dynamics, the following three observations are fundamental:
- The market is driven by many different trends each withbounded duration.
- The operation of the trends is not independent of each other.
- Different trends are best captured by different interval chartsor data series of different interval sizes.
Because of the influence from higher order time intervals, the analysis of the patterns will be associated with a high degree of uncertainty if the focus is on a single or a limited few interval charts. The uncertainty will be further increased if the analysis is done by using a single indicator. To obtain robust results, a full – view approach must be adopted to take all trends of different durations into consideration; and an integrated approach must be adopted to incorporate information about different aspects of the market dynamics from multiple indicators.
This book presents such a system, named Full View Integrated Technical Analysis (FVITA). The broad understanding of the market dynamics obtained through FVITA naturally lends itself to being integrated with fundamental analysis, making it possible to further enhance the explanatory power of the analytical system and deepen the understanding about broad market dynamics.
Contents:
- The Need for a Full View Integrated Approach
- Two Basic Elements of Market Dynamics
- Multi-Screen Systems
- Bounded, Interval-Specific Bull and Bear Markets
- Market Turning Points and Duration of Pauses
- Trend Reversals vs. Temporary Countertrends
- Pauses Under Different Market Conditions
- Case Studies
- Random Walk, Efficient Market vs. Market Activism
- Integrating Macro, Fundamental, Quantitative and Technical Analysis
- Other Issues
Full View Integrated Technical Analysis: A Systematic Approach to Active Stock Market Investing By Xin Xie pdf
Jonathan Rich (verified owner) –
It follows the tradition of Elder and DeMark, but goes further in providing a rationale for the trading system. The proposed system differs but apparently benefited from the ideas behind the Adaptive Moving Averages. The best feature of the book is that it allows one to think systematically about market dynamics and the failures of the indicators. It is conceptually intuitive, but requires patience to get over the details.
Sunny Watson (verified owner) –
The book offers a much needed critical evaluation of the accepted wisdom in technical analysis and provides a constructive way forward. The author does an excellent job in pointing out the major pitfalls of technical analysis and presents an effective framework to address them. A mind-opening work, a must read if you wish to do your own thinking. Basic knowledge about technical analaysis is necessary to appreciate the powerful insight offered by the book.
Greyson Proctor (verified owner) –
I cannot give it 5 stars because I cannot get an experiential understanding of how the principles work. There are also a lot of rules that need to be managed to work through the charts, which will take some study and hard work.
Clearly this book is based on some well founded thinking.
Chandler Duncan (verified owner) –
(a) The book offers a number of practical insights into the use of technical analysis for trading. It provides a hands on (how do you decide the market is non trending?), rather than a theoritical approach(use oscillators in non trending markets).
(b) It is not an easy read, but I could get to some of the ideas on my second attempt. This is not a problem, but just a warning not to expect an easy reading experience.
(c) A number of nuggets are hidden in the pages. Bollinger Bands, Multiple time frames, Patterns for deciding a market reversal, using MACD to determine a continuation. Probably every page has some setup, strategy to discuss. I think a patient reader will obtain any number of good ideas from the book.