Technical Analysis for Dummies - Barbara Rockefeller

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Résumé :

Understand and apply the latest evidence-based trading strategies and techniques in technical analysis

In the newly revised fifth edition of Technical Analysis For Dummies, renowned economist and foreign exchange forecaster Barbara Rockefeller walks you through the basic principles, formulas, and techniques you need to reliably predict the movement of prices based on technical data. This straightforward guide shows you how to put technical knowledge to work to generate profitable trades and make lucrative decisions within your portfolio.

This latest edition offers useful updates on new developments in the discipline, including the integration of artificial intelligence to analyze data, identify patterns, and make predictions. It also covers the incorporation of non-traditional data sources, like social media sentiment and web traffic.

Technical Analysis For Dummies also provides:

• Step-by-step guidance on spotting market trends and key indicators of future price increases or decreases
• Behavioral economics insights you can apply to your own trading strategy for immediate improvements in your risk-adjusted returns
• Discussions of the latest innovations in charting

With comprehensive and cutting-edge explorations of the theories, trends, and science that animate technical analysis, Technical Analysis For Dummies explains the hands-on tools and techniques you'll need to make informed, independent market decisions that maximize returns and minimize risk....

Biographie:

Barbara Rockefeller, BA, MA, is an international economist and forecaster specializing in foreign exchange. A pioneer in combining technical and fundamental analysis, she publishes daily reports for central banks, fund managers, and traders. She's also the author of all previous editions of Technical Analysis For Dummies and five other books, including The FX Matrix....

Sommaire:

Introduction 1

About This Book 1

Foolish Assumptions 3

Icons Used in This Book 3

Beyond the Book 4

Where to Go from Here 4

Part 1: Getting Started with Technical Analysis 5

Chapter 1: Introducing Technical Analysis 7

Stepping Up to Science 9

Unpacking Lingo 10

Buy-and-Hold Is Bunk 11

Recognizing Who Uses Technical Analysis 13

Remembering the Trend Is Your Friend 13

Charting your path 14

Picking a time frame 14

Viewing the Scope of Technical Analysis 15

Charting 16

Market timing 16

Trend-following 16

Technical analysis 16

Algorithmic trading 17

Why Technical Analysis Works and What Can Go Wrong 20

Setting new rules 21

Controlling losses to protect gains 21

Why Technical Analysis Gets a Bad Rap 22

Beating the Market Is Hard Work 23

Finding Order 24

What You Need to Get Started 25

Chapter 2: Tapping into the Wisdom of the Crowd 27

Securities Are Not Socks 28

The eBay Model of Supply and Demand 30

Securities have their own economics 30

Creating demand from scratch 31

Identifying Crowd Behavior 32

Defining Normal 33

Reverting to the mean 33

Trading mean reversion 34

Breaking Normal 35

Going against the grain: Retracements 36

Recognizing why retracements happen 37

Accepting When the Crowd Is Extreme 40

Avoiding stampedes 41

Lesser devilry - playing games with traders' heads 42

Chapter 3: Trade What You See: Market Sentiment 43

The Origin of Market Sentiment 44

Thinking Outside the Chart: Defending Sentiment 47

Monitoring investors: The bull/bear ratio 47

Following the money: Breadth indicators 47

Viewing volatility: The VIX 48

New and improved sentiment indicators 48

Getting the Lowdown on Volume 49

Tracking on-balance volume 50

Refining volume indicators 50

Leading the way with spikes 51

Getting a two-for-the price-of-one coupon 52

Blindsiding Yourself 52

Understanding confirmation bias and anchoring 53

Being aware of potential errors 54

Thinking Scientifically 55

Humility: Conditions and contingencies 55

Sample size 56

Chapter 4: Gaining Critical Advantage from Indicators 59

Overcoming Noise 60

Distinguishing between noise and an Event 61

Knowing where noise comes from 61

Noise from inside the market 62

Indicators Give You the Edge 62

Classifying indicators 63

Understanding what indicators identify 64

Choosing your trading style 64

Examining How Indicators Work 66

Finding relevant time frames 66

Heeding indicator signals 67

Establishing Benchmark Levels 69

Choosing Indicators 70

Examining Indicators in Detail 71

Constructing a backtest 71

The other top metrics 73

Fixing the indicator 73

Evaluating the risks of backtesting 74

Chapter 5: Managing the Trade 75

Finding Your Risk Profile 76

What's your ratio? 76

Introducing positive expectancy 76

Measuring the trade 77

Considering your stake 77

Adhering to the no-guru rule 78

Building Trading Rules 78

Creating your trading plan with four easy rules 79

Combining indicators with trading rules 79

Trading styles 80

Knowing How Much Is Enough 81

Using the First Line of Defense: Stop-Loss Orders 81

Mental stops are hogwash 82

Sorting out the types of stops 83

Chapter 6: Taming Uncertainty:...