Trading Tools and Tactics – Reading the Mind of the Mind of the Market + Website

Introduction: The Journey Begins xi
<p>CHAPTER 1 Subjective Doesn t Work in the Market: Technical Analysis Is the Objective Standard 1</p>
<p>The Guru Syndrome 1</p>
<p>The Pitfalls of Fundamental Analysis 2</p>
<p>Technical Indicators: Adding Subjectivity to the Chart 5</p>
<p>Approaching the Markets Objectively 8</p>
<p>In Summary 14</p>
<p>CHAPTER 2 Candlestick Analysis: Using the Language of Candles to Profit from Market Moves 17</p>
<p>A Single Candle 18</p>
<p>Multiple Candle Formations 21</p>
<p>Failure Is Not Always Bad 29</p>
<p>In Summary 31</p>
<p>CHAPTER 3 Support and Resistance: Price Is King 33</p>
<p>Price Patterns 33</p>
<p>Recognizing Reference Points 36</p>
<p>The Two Forms of Support and Resistance: Major and Minor 40</p>
<p>How Support and Resistance Areas Form 46</p>
<p>In Summary 56</p>
<p>CHAPTER 4 Moving Averages the Right Way: Visual Aids to Price Action 57</p>
<p>A Valuable Technical Measurement 57</p>
<p>Convergence Can Help 63</p>
<p>Moving Averages as Focal Areas 67</p>
<p>Staying Objective 69</p>
<p>A Few Good Rules While Using</p>
<p>Moving Averages 74</p>
<p>Other Points to Consider 75</p>
<p>Moving Averages to Find Plays 78</p>
<p>In Summary 79</p>
<p>CHAPTER 5 Volume Is Money: Commitment to Prices 81</p>
<p>The Fallacies of Volume 81</p>
<p>Using Volume Properly 85</p>
<p>The Primary Uses of Volume 87</p>
<p>Volume As It Relates to Tradability 98</p>
<p>In Summary 101</p>
<p>CHAPTER 6 Retracement Analysis: Using Retracement Analysis to Continue Your Move 103</p>
<p>The Concept of Retracements 103</p>
<p>To Retrace or Not to Retrace? 106</p>
<p>Retracements Imply a Trend 107</p>
<p>Continuing To Keep It Objective 111</p>
<p>What Lies Beyond 60 Percent? 111</p>
<p>Retracement Levels in Downtrends 114</p>
<p>A Special Retracement Pattern 115</p>
<p>Retracement Levels in Sideways Trends 117</p>
<p>What Lies Beyond 100 Percent? 118</p>
<p>The Bigger Picture 121</p>
<p>In Summary 123</p>
<p>CHAPTER 7 Bar–by–Bar Analysis: Each Bar Tells Us Something 125</p>
<p>Objectivity Is Still the Goal 126</p>
<p>A Quick Review of Individual Bars 126</p>
<p>How the Bars Interact 128</p>
<p>Additional Thoughts 135</p>
<p>In Summary 137</p>
<p>CHAPTER 8 Market Internals: Examining the Direction of the Market 139</p>
<p>Determining Price Movement 141</p>
<p>When to Be Different 143</p>
<p>Favorite Market Internals 143</p>
<p>A Quick Overview of Intermarket Analysis 157</p>
<p>In Summary 158</p>
<p>CHAPTER 9 Relative Strength: Relative Strength Defined 159</p>
<p>Identifying Different Types of Relative Strength 160</p>
<p>Is Relative Strength Always Good? 166</p>
<p>Relative Strength and Weakness with Morning Gaps 170</p>
<p>Relative Strength with Sector Analysis 172</p>
<p>Relative Strength to Market Internals 173</p>
<p>In Summary 174</p>
<p>CHAPTER 10 The Trend Is Your Friend: There Are Only Three Directions 177</p>
<p>What Makes a Trend? 178</p>
<p>Pivots 178</p>
<p>When Pivots Come Together 182</p>
<p>Some Subjective Guidance 186</p>
<p>Keeping It Clean 188</p>
<p>Checking the Reaction 192</p>
<p>Final Thoughts 198</p>
<p>In Summary 200</p>
<p>CHAPTER 11 Shoot the Gap: What Is a Gap? 203</p>
<p>What Causes a Gap? 206</p>
<p>Fallacies about Gaps 207</p>
<p>Gaps and the Daily Chart 209</p>
<p>The Intraday Play 214</p>
<p>In Summary 219</p>
<p>CHAPTER 12 Frame–by–Frame: The Concept of Multiple Time Frames 221</p>
<p>Which Time Frames? 221</p>
<p>The First Goal of Using Multiple Time Frames 223</p>
<p>A Powerful Concept Emerges 228</p>
<p>Warning Signs in the Micro Trend 230</p>
<p>Hidden Patterns 233</p>
<p>In Summary 236</p>
<p>CHAPTER 13 Making Failure Work for You: Recognizing When Patterns Fail 239</p>
<p>Did the Play Stop, or Did the Pattern Fail? 241</p>
<p>When Good Patterns Fail 242</p>
<p>Capitalizing on Predictable Failures 246</p>
<p>Expected (or Unexpected) Failure 248</p>
<p>In Summary 250</p>
<p>CHAPTER 14 Manage the Trade and the Money: The Missing Link 253</p>
<p>Managing the Money Share Size 253</p>
<p>How Much to Risk 257</p>
<p>Managing the Money Throughout the Day 259</p>
<p>Considerations When Swing Trading 260</p>
<p>Basic Trade Management Concepts 262</p>
<p>Managing the Trade Staying with the Trend 264</p>
<p>Managing the Trade Zooming Down 265</p>
<p>In Summary 267</p>
<p>CHAPTER 15 Getting Through a Typical Trading Day: Strategies to Incorporate into Your Daily Routine 271</p>
<p>Beginning Your Day 271</p>
<p>Planning Your Trade, Trading Your Plan 273</p>
<p>After the Close 275</p>
<p>Maximizing the Winners, and Handling the Losers Properly 277</p>
<p>CHAPTER 16 There Is Only One Truth in the Markets 279</p>
<p>Price Is King 279</p>
<p>Appendix A: Abbreviations 283</p>
<p>Appendix B: Trade Types 285</p>
<p>Glossary 287</p>
<p>About the Companion Website 299</p>
<p>Index 301</p>