Top technical analyst and Barron's Online columnist Kahn demystifies technical analysis.
While many investors view technical analysis as a mystical tea-leaf reading process, this could not be further from the truth, says the author, in the second edition of this handy guide to technical analysis. Indeed, Kahn teaches investors how to bring clarity and objectivity to their market decisions by augmenting their fundamental research with the use of technical analysis. Beginning with a general overview of the subject, the author then moves on to the core concepts of chart analysis and the various facets of the investment process. Finally, he covers more advanced topics like candlesticks, cycles and Elliot waves, and also explains common technical terms and jargon and how to identify patterns, listen to the market and reality check broker recommendations.
Investors will appreciate this straightforward and clear guide to technical analysis.
--Kirkus Reports, Vol. 3, Issue 3 (March 31, 2006)
Michael N. Kahn has been charting the markets for more than two decades as a product designer, analyst, and teacher. He writes extensively for wide investment audiences, both in his proprietary newsletter Quick Takes Pro and in columns for Barron's Online and was formerly the chief technical analyst for BridgeNews, a division of Bridge Information Systems, a leading source of global financial information, transaction and network services.
Kahn is a widely sought-after guest on financial television networks for both his accuracy and his ability to clearly explain markets. He is a board member of the Market Technicians Association, and author of Technical Analysis Plain and Simple, First Edition (FT Prentice Hall) and Real World Technical Analysis (CRB Publishing).
Acknowledgments xix
About the Author xxi
Preface xxiii
About This Book xxvii
How to Get the Most From This Book xxxiii
Part I: A Few Things You'll Need to Know Before You Begin 1
Chapter 1: Required Background 3
Chapter 2: What Is Technical Analysis? 13
Chapter 3: What Is a Chart? 19
Chapter 4: Jargon You Cannot Avoid 25
Part II: The Core of Chart Analysis 33
Chapter 5: Concepts 35
Chapter 6: What Are Supply and Demand in the Markets? 41
Chapter 7: The Trend Is Your Friend and So Are Trendlines 47
Chapter 8: See the Forest and the Trees 55
Chapter 9: Chart Patterns-When the Market Needs a Rest 63
Chapter 10: Chart Patterns-When the Market Is Changing Its Mind 73
Chapter 11: Chart Patterns-Explosions 83
Chapter 12: Corrections in Perspective 89
Part III: Technical Analysis in the Real World 95
Chapter 13: What Is There Other Than Price? 97
Chapter 14: Volume 109
Chapter 15: Time 117
Chapter 16: Sentiment 121
Chapter 17: Fundamental Analysis Really Is Technical Analysis 129
Chapter 18: Just What Makes a Stock (Bond, Commodity) Look Good? 135
Chapter 19: Risk Versus Reward-Is This Stock Really Worth It? 147
Chapter 20: This Isn't Brain Surgery 159
Part IV: The Actual Process of Investing 173
Chapter 21: OK, Now Do It! 175
Chapter 22: How to Know if You Are Wrong 181
Chapter 23: Sometimes Being Wrong Is Good 185
Chapter 24: When to Sell 189
Chapter 25: Bear Markets 201
Chapter 26: A Word About Your Ego 205
Part V: Tools and Case Studies 207
Chapter 27: What Do I Really Need to Get Started? 209
Chapter 28: Building Your Technical Toolbox 215
Chapter 29: Final Advice 221
Chapter 30: Case Study-The Perfect World 223
Chapter 31: Case Study-The Real World 231
Chapter 32: How Good Is Your Broker's Stock? 245
Part VI: Further On Down the Road 251
Chapter 33: Introduction to Candlesticks 253
Chapter 34: Cycles 263
Chapter 35 Elliott Waves 267
Chapter 36: Technical Terms You May Have Heard 271
Chapter 37: Debunking the TV Analyst 289
Fun with Jargon 293
Closing Thoughts 301
Index 303