Charting Made Easy

Introduction ix
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Chapter 1. WHY IS CHART ANALYSIS SO IMPORTANT? 1
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<br />Market Timing 2
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Chapter 2. WHAT IS CHART ANALYSIS? 3
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<br />Charts Reveal Price Trends 4
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<br />Types of Charts Available 5
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<br />Any Time Dimension 5
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Chapter 3. HOW TO PLOT THE DAILY BAR CHART 7
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<br />Charts Are Used Primarily to Monitor Trends 7
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Chapter 4. SUPPORT AND RESISTANCE TRENDLINES AND CHANNELS 9
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Chapter 5. REVERSAL AND CONTINUATION PRICE PATTERNS 13
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<br />Reversal Patterns
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<br />The Head and Shoulders 13
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<br />Double and Triple Tops and Bottoms 14
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<br />Saucers and Spikes 15
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<br />Continuation Patterns
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<br />Triangles 16
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<br />Flags and Pennants 20
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Chapter 6. PRICE GAPS 23
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Chapter 7. THE KEY REVERSAL DAY 25
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Chapter 8. PERCENTAGE RETRACEMENTS 27
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Chapter 9. THE INTERPRETATION OF VOLUME 29
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<br />Volume Is an Important Part of Price Patterns 30
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<br />On–Balance Volume (OBV) 30
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<br />Plotting OBV 31
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<br />OBV Breakouts 32
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<br />Other Volume Indicators 32
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Chapter 10. USING DIFFERENT TIME FRAMES FOR SHORT– AND LONG–TERM VIEWS 35
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<br />Using Intraday Charts 35
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<br />Going from the Long Term to the Short Term 36
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Chapter 11. USING A TOP–DOWN MARKET APPROACH 39
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<br />The First Step: The Major Market Averages 39
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<br />Different Averages Measure Different Things 40
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<br />The Second Step: Sectors and Industry Groups 41
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<br />The Third Step: Individual Stocks 41
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Chapter 12. MOVING AVERAGES 45
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<br />Popular Moving Averages 45
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<br />Bollinger Bands 46
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<br />Moving Average Convergence Divergence (MACD) 46
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Chapter 13. OSCILLATORS 47
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<br />Relative Strength Index (RSI) 47
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<br />Stochastics 47
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<br />Any Time Dimension 49
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Chapter 14. RATIOS AND RELATIVE STRENGTH 51
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<br />Sector Ratios 51
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<br />Stock Ratios 51
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<br />Market Ratios 52
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Chapter 15. OPTIONS 53
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<br />Option Put/Call Ratio 54
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<br />Contrary Indicator 54
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<br />CBOE Volatility Index (VIX) 54
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Chapter 16. THE PRINCIPLE OF CONFIRMATION 55
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Chapter 17. SUMMARY AND CONCLUSION 57
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<br />Investing Resource Guide 59