Technical Analysis and Chart Interpretations: A Comprehensive Guide to Understanding Established Trading Tactics for Ultimate Profit
Technical Analysis and Chart Interpretations delivers simple explanations and easy-to-understand techniques that demystify the technical analysis process. In his usual straightforward style, bestselling author Ed Ponsi guides you through the twists and turns to show you what really matters when it comes to making money.
Technical analysis had taken the emotion out of my trading. It helped me to avoid being drawn into a subjective narrative. The reality of the price trumped the inner voice that whispers, ‘‘It’s a good stock, don’t sell it yet, it’ll come back.’’ Once I understood that reality, it was impossible to ignore.
The game of trading is constantly changing. The recent advent of high-frequency trading has closed certain loopholes that a clever individual trader could use to his or her advantage. However, as one door closes, another one opens. There are always ways to win at this game, and if you want to win badly enough, you will find them.
This book is designed to give you an advantage. If you can read a chart, you’ll know when to get into a trade; even more important, you’ll know when it’s time to get out. Charts provide a visual history of the price and reveal the strengths and weaknesses of the market participants. Understanding those strengths and weaknesses helps us to anticipate future turning points.
Maybe the best thing about technical analysis is this: It forces us to confront the realities of the market. Technical analysis allows us to deal with what is actually happening instead of what we believe should be happening. Belief can be a dangerous thing in trading—specifically, the belief that we know what should or will happen in any given situation. It’s better to see things as they really are than as we wish to see them, and technical analysis allows us to do just that.
- THE FOUNDATION OF TECHNICAL ANALYSIS
- KEY CONCEPTS OF TECHNICAL ANALYSIS
- PRICE PATTERNS
- CANDLESTICK PATTERNS
- TECHNICAL INDICATORS
- ATR, ADX, AND PSAR
- POINT AND FIGURE CHARTING
- ODDS AND ENDS
- BEHAVIORAL ASPECTS OF TECHNICAL ANALYSIS