Technical Analysis Tools: Creating a Profitable Trading System


  • Format: PDF
  • Pages: 319
  • Published Date: 2008


In Technical Analysis Tools, professional trader Mark Tinghino cuts through the clutter. First, he demystifies the essential technical approaches such as chart patterns, indicators, Market Profile, and Elliott Wave. He also introduces a new instrument of his own: the cyclical model, which helps identify trend reversals. Next, he provides techniques that turn the tools into trading programs. Those techniques include how to time buying and selling, how to account for the effect of fundamental analysis on technical analysis, and how to use spreads to effectively manage risk.

Author’s Introduction:

Technical analysis has come a long way in the past few decades, and today traders of every level make the most of this very useful tool. So, this book is for institutional traders and individual investors alike. Although it takes you through the basics from square one, as well as covering advanced topics, it also offers some unique insights based on my work on cycles for timing trades on evaluating market news, which is not something you will find in most other books available on technical analysis.

I begin with a discussion of fundamental vs technical analysis, including the historical causes of technical analysis overtaking fundamentals as the preferred approach among professional traders and money managers. I then cover the essentials of reading price charts, followed by adjunct tools such as indicators and Market Profile for assessing volume. To that solid foundation, I add my cyclical model, which I use as an overlay on standard technicals for precise timing of trades. Finally, I discuss building a complete trading program and sound money management principles.

To date no analyst has been able to accurately forecast market prices 100 percent of the time. Armed with massive computerized number-crunching and modeling capabilities and futuristic neural nets, current state-of-the-art analysis still falls short of National Weather Service meteorological forecasts, which are generally extremely accurate for three days into the future. The difference lies in cause and effect factors. Wind vectors and ocean currents are juggernaut forces that are not easily swayed from their course of movement, whereas markets consisting of mass auctions involving a multitude of humans making trading decisions based on emotions and occasionally reason are subject to winds of commerce that can be very fickle indeed.


  • Approaches to Market Analysis
  • Fundamentals: Navigating the Labyrinth
  • Chart Patterns: Landscape of the Market
  • Alternative Charting Techniques
  • Indicator Soup: Not-So-Secret Recipes
  • The Market as a Wave Phenomenon
  • Leveraging Derivatives
  • Finessing the Risk Factor with Spreads
  • A Cyclical Model of the Markets
  • Backtesting and Planning Trading Strategies
  • Mental Discipline and Risk Management