The Handbook of Technical Analysis + Test Bank : The Practitioner's Comprehensive Guide to Technical Analysis.

Cover -- Title Page -- Copyright -- Contents -- Foreword -- Preface -- Acknowledgments -- About the Author -- Chapter 1 Introduction to the Art and Science of Technical Analysis -- 1.1 Main Objective of Technical Analysis -- 1.2 Dual Function of Technical Analysis -- 1.3 Forecasting Price and Market Action -- Forecasting Stock Prices Using Fundamental Analysis -- Forecasting Stock Prices Using Information -- Forecasting Stock Prices Using Technical Analysis -- Fundamental versus Technically Based Market Timing -- The Fundamentalist versus Technical Analysts -- Technical Data and Information -- 1.4 Classifying Technical Analysis -- Mean Reverting versus Non-Mean Reverting Approach -- Advantages and Disadvantages of Technical Analysis -- 1.5 Subjectivity in Technical Analysis -- Subjectivity in the Choice of Analysis and Technical Studies -- Contradictory, Confirmatory, and Complementary Signals -- Subjectivity in Pattern Identification -- Interpretational and Inferential Subjectivity -- Subjectivity and Selective Perception -- Subjectivity in Determining an Event: The Point of Entry -- Subjectivity in Pattern Recognition Diminishes with Practice -- 1.6 Basic Assumptions of Technical Analysis -- What Are the Markets Really Discounting? -- Market Discounting versus EMH -- Random Walk -- Real‐World Discounting -- Price versus Value -- Market Behavior Repeats Itself -- The Market Tends to Move in Trends -- 1.7 Four Basic Assumptions in the Application of Technical Analysis -- The Efficacy of Technical Analysis at Various Timeframes -- 1.8 Market Participants -- Popular Markets and Instruments -- 1.9 Chapter Summary -- Chapter 1 Review Questions -- References -- Chapter 2 Introduction to Dow Theory -- 2.1 Origins and Proponents of Dow Theory -- 2.2 Basic Assumptions of Dow Theory -- The Averages Discount Everything (Pricing in Information).

The Market Has Three Trends -- Primary Trends Have Three Phases -- A Trend Persists until Its Reversal Is Indicated -- The Averages Must Confirm One Another -- Volume Must Confirm the Trend -- Only Closing Prices Are Recognized -- 2.3 Challenges to Dow Theory -- 2.4 Chapter Summary -- Chapter 2 Review Questions -- References -- Chapter 3 Mechanics and Dynamics of Charting -- 3.1 The Mechanics and Dynamics of Charting -- Technical Data -- Quantization of Price -- Significance of OH LC Data -- 3.2 Gap Action: Four Types of Gaps -- 3.3 Constant Chart Measures -- Constant‐Time Charts -- Constant‐Range Charts -- Constant‐Volume Charts -- Constant‐Transaction (Tick) Charts -- Constant‐Volatility Charts -- Chart Constructs with No Measures of Constancy -- 3.4 Futures Contracts -- 3.5 Chapter Summary -- Chapter 3 Review Questions -- References -- Chapter 4 Market Phase Analysis -- 4.1 Dow Theory of Market Phase -- Market Phase Sentiment and Participatory Behavior -- Technical Aspects of Consolidations -- Completion of a Consolidation Phase -- 4.2 Chart Pattern Interpretation of Market Phase -- 4.3 Volume and Open Interest Interpretation of Market Phase -- 4.4 Moving Average Interpretation of Market Phase -- 4.5 Divergence and Momentum Interpretation of Market Phase -- 4.6 Sentiment Interpretation of Market Phase -- 4.7 Sakata's Interpretation of Market Phase -- 4.8 Elliott's Interpretation of Market Phase -- 4.9 Cycle Analysis Interpretation of Market Phase -- 4.10 Chapter Summary -- Chapter 4 Review Questions -- References -- Chapter 5 Trend Analysis -- 5.1 Definitions of a Trend -- Classification of a Trend According to Dow Theory -- Definition versus Absolute Measure of a Trend -- Describing Consolidation and Trends via Wave Cycles and Degrees -- Significance of Higher Wave Degree Reversals -- Reversals, Corrections, and Retracements.

Trends in Terms of OHLC Data -- 5.2 Quality of Trend: 16 Price Characteristics Impacting Future Price Action and Trend Strength -- 5.3 Price and Trend Filters -- 5.4 Trend Participation -- Participating in the Market -- Orders for Entering and Exiting a Position -- 5.5 Price Inflection Points -- The Four Modes of Initiating Trend Capture -- General Scenarios for Market Tops and Bottoms -- Swing Points and Barrier Strength -- Support and Resistance Role Reversals -- Trading in the Direction of the Trend -- Trend Filters -- Stopsizing Issues Related to Stop Placement -- 5.6 Trendlines, Channels, and Fan Lines -- Provisionary (Tentative) and Confirmed (Valid) Trendlines -- Short‐, Medium‐, and Long‐Term Trendlines -- Trendline Support and Resistance: The Behavioral Component -- Invalidating and Redrawing Trendlines -- Elements of Trendline Reliability -- Trendline Measuring Objectives -- Strengths and Weaknesses of Trendline Analysis -- Continuation &amp -- Reversal Trendline Entries -- Channel Construction -- Nested Channels -- Price Target Projection -- Anticipating Channel Breakouts -- Sperandeo and DeMark Trendlines -- Standard Fan Lines -- Fibonacci Fan Lines -- Speed Lines -- Other Types of Trend Overlay Indicators: Andrew's Pitchfork -- 5.7 Trend Retracements -- Retracements: Dow, Fibonacci, and Gann One‐Thirds and One‐Eighths -- 5.8 Gaps and Trends -- 5.9 Trend Directionality -- 5.10 Drummond Geometry -- 5.11 Forecasting Trend Reversals -- 5.12 Chapter Summary -- Chapter 5 Review Questions -- References -- Chapter 6 Volume and Open Interest -- 6.1 The Mechanics of Volume Action -- Dow Theory of Volume Confirmation -- Volume Confirmation and Divergence -- Reading Divergence for Volume Bars, Smoothed Volume, Volume Oscillators, and Open Interest -- Volume as a Timing Indicator -- Volume‐Weighted Average Price/Moving Average (VWMA).

Volume Buying and Selling Climaxes -- Chart Sensitivity to Volume Action -- Volume Action and the Strength of a Price Barrier -- Filtering Volume Action -- Volume Filtered Inflection Points -- 6.2 Volume Oscillators -- Price‐Based Volume Indicators: The OBV and A/D Line -- Price‐Based Volume Indicators: The Accumulation Distribution Line (ADL) -- Price‐Based Volume Indicators: The Chaikin Money Flow and Chaikin Oscillator -- Non‐Price‐Based Volume Breadth Indicator: The NYSE Up/Down Volume -- Open Interest Indicators: The COT Report and Herrick Payoff Index -- 6.3 Chapter Summary -- Chapter 6 Review Questions -- References -- Chapter 7 Bar Chart Analysis -- 7.1 Price Bar Pattern Characteristics -- Construction of a Price Bar -- Classification of Price Bar Formations -- 7.2 Price Bar Pattern Characteristics -- Seven Generic Single and Double Bar Bullish and Bearish Reversal Formations -- Six Generic Triple Price Bar Reversal Formations -- Four Generic Multiple Price Bar Reversal Formations -- Two Simple Continuation Bars -- Sixteen Main Price and Volume Action Reversal Characteristics -- 7.3 Popular Bar Reversal Patterns -- Key Reversal Bar -- Two Bar Reversals -- Triple Bar Reversals -- Multiple Bar Island Reversals -- Outside Bars -- Inside Bars -- Exhaustion Bars -- Price Spikes -- Pin Bars -- Failed Support‐ and Resistance‐Based Breakout Entries -- DiNapoli Double Repo Pattern -- 7.4 Volatility-Based Breakout Patterns -- Hikkake Pattern: The Failed Breakout Reversal Entry -- William's Oops Entry -- ID/NR 4‐7 Breakouts -- 7.5 Chapter Summary -- Chapter 7 Review Questions -- References -- Chapter 8 Window Oscillators and Overlay Indicators -- 8.1 Defining Indicators and Oscillators -- Classification of Oscillators and Indicators -- Chart Scale Sensitivity and Invariance -- Static and Dynamic Overlay Indicators.

8.2 Eight Ways to Analyze an Oscillator -- OBOS Overextended Levels -- Equilibrium and Zero Line Crossovers -- Signal Line Crossovers -- Price‐Oscillator Divergence -- Geometrically Based Oscillator Pattern Analysis -- Numerically Based Oscillator Pattern Analysis -- Horizontally Based Oscillator Pattern Analysis -- Oscillator‐on‐Oscillator Analysis -- 8.3 Cycle Period, Multiple Timeframes, and Lagging Indicators -- Oscillator Optimization via the Dominant Half‐Cycle Period -- Oscillator Analysis on Multiple Timeframes (MTF ) -- Lagging Indicators -- 8.4 Input Data -- Data Drop‐Off Effect -- 8.5 Trend Trading Using Oscillators -- 8.6 Window Oscillators -- ROC (Tracking Momentum via the Ratio Method) -- MOM (Tracking Momentum via the Difference Method) -- MACD and MACD Histogram -- Average True Range (ATR ) -- The Stochastic Oscillator -- Relative Strength Index (RSI) -- 8.7 Overlay Indicators -- What Are Floor Trader's Pivot Points? -- 8.8 Chapter Summary -- Chapter 8 Review Questions -- References -- Chapter 9 Divergence Analysis -- 9.1 Definition of Divergence -- 9.1.1 Main and supporting Data series -- 9.1.2 Defining Direction in Divergence analysis -- 9.1.3 Determining Direction in Divergence Analysis -- 9.2 General Concept of Divergence -- 9.2.1 Concept of Confirmation in Divergence analysis -- 9.2.2 Trend Referencing in Divergence Analysis: The Prior, Current, and Subsequent Trends -- 9.2.3 Wave Degrees in Divergence analysis -- 9.2.4 reversal and Continuation in terms of Wave Degrees -- 9.2.5 Continuation and Reversal Indications Independent of Price Direction -- 9.2.6 Narrow Interpretation of Divergence and Convergence -- 9.2.7 broad interpretation of Divergence -- 9.2.8 Convergence and Divergence under the broad interpretation of Divergence -- 9.2.9 Directionally and non‐Directionally aligned slope Diver.

9.2.10 slope analysis and slope Divergence.

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