A simple, straightforward guide to the fundamentals of technical analysis Technical analysis is a collection of techniques designed to help you make trading decisions in securities markets. Technical Analysis For Dummies helps you take a hard-headed look at what securities prices are actually doing rather than what economists or analysts say they should be doing, giving you the know-how to use that data to decide whether to buy or sell individual securities. Since the publication of the first edition, readers have been faced with many changes, such as new interest rates, looming bank crises, and adjusting market climates. This new edition provides an updated look at unique formulas and key indicators, as well as refreshed and practical examples that reflect today today’s financial atmosphere. Determine how markets are performing and make decisions using real data Spot investment trends and turning points Improve your profits and your portfolio performance With straightforward coverage of concepts and execution, Technical Analysis For Dummies shows you how to make better trading decisions in no time. 04 – Table of contents Introduction 1 Part I: Defining Technical Analysis 5 Chapter 1: Opening the Technical Analysis Toolbox 7 Chapter 2: Uncovering the Essence of Market Movement 23 Chapter 3: Going with the Flow: Market Sentiment 35 Part II: Preparing Your Mind for Technical Analysis 51 Chapter 4: The Ar t of Trading 53 Chapter 5: Managing the Trade 71 Chapter 6: Reading Basic Bars: How to Pounce on Opportunities 89 Part III: Observing Market Behavior 109 Chapter 7: Reading Special Bar Combinations: Small Patterns 111 Chapter 8: Redrawing the Price Bar: Japanese Candlesticks 133 Part IV: Finding Patterns 149 Chapter 9: Seeing Patterns 151 Chapter 10: Drawing Trendlines 165 Chapter 11: Transforming Channels into Forecasts 179 Part V: Dynamic Analysis 199 Chapter 12: Using Dynamic Lines 201 Chapter 13: Measuring Momentum 223 Chapter 14: Estimating Volatility 241 Chapter 15: Ignoring Time: Point-and-Figure Charting 253 Chapter 16: Combining Techniques 267 Chapter 17: Cycles and Waves 285 Part VI: Part of Tens 297 Chapter 18: Ten Secrets of the Top Technical Traders 299 Chapter 19: Ten Rules for Working with Indicators 305 Appendix: Additional Resources 309 Index 313 13 – Biographical note Barbara Rockefeller is an expert on technical analysis and the author of the previous Technical Analysis For Dummies editions. She writes daily newsletters on foreign exchange using both fundamental and technical analysis, as well as other investment books published by Wiley.