New Frontiers in Technical Analysis

Preface xi Acknowledgments xv CHAPTER 1: Evidence of the Most Popular Technical Indicators1 Paul Ciana, CMT Defining Technical Analysis 2 Defining Chart Types 5 Evidence of Chart Type Popularity 10 Evidence of Technical Indicator Popularity 14 Applying the Most Popular Technical Indicators 18 Conclusion 45 CHAPTER 2: Everything Is Relative Strength IsEverything 49 Julius de Kempenaer "This Time It's Different" 50 What Is Comparative Relative Strength? 51 The JdK RS-Ratio and JdK RS-Momentum 65 Relative Rotation Graphs 75 Conclusion 83 CHAPTER 3: Applying Seasonality and Erlanger Studies 85 Philip B. Erlanger, CMT Testing for a Valid Seasonal Cycle 86 Applying Cycles as a Strategy 94 Monitoring Seasonal Data 101 Erlanger Studies: The Art of the Squeeze Play 108 CHAPTER 4: Kase StatWareTM and Studies: Adding Precision toTrading and Investing 155 Cynthia A. Kase, CMT, MFTA Introduction to KaseSwing 157 Kase DevStops 169 Kase Momentum Divergence Algorithm 177 Kase PeakOscillator and KaseCD 188 Why Use KasePO and KaseCD? 189 Kase Permission Stochastic and Screen 199 Entering Trades and the Kase Easy Entry System 201 About the Kase Easy Entry System 206 Trading with Kase StatWare 209 Kase Bar Chart (Equal TrueRange Bar Chart) 211 Summary 215 CHAPTER 5: Rules-Based Trading andMarket Analysis UsingSimplified Market Profile 217 Andrew Kezeli Technical Analysis Is Simple in Theory--Difficult inPractice 218 Rules-Based Trading: Automated Strategy Trading versusDiscretionary Trading 221 Balance versus Imbalance: Distinguishing the Two Phases ofMarket Activity 222 There Are Only Three Market Segments: Nontrending, Uptrending,and Downtrending 224 Four Market Participants--and Then a Fifth . . . 228 Market Profile 231 Market Movement: The Four Steps of Market Activity 234 Market Structure 236 The Relative Speed of the Market's Building-Block Components239 Vertical Nondevelopment ("Minus Development") 240 Simplifying Market Profile 245 TAS PRO VAP Map 247 Rules-Based Trading and Analysis with TAS PRO Navigator 255 TAS PRO Indicator Application Examples 257 Conclusion 280 CHAPTER 6: Advanced TradingMethods 283 Rick Knox From the CBOT to the Charts 283 Trading by Gut Feeling 287 Understanding the Background of an Opportunity 288 They Say Entry Is Easy, but Not in My Book 295 Trade When the Odds Are in Your Favor 299 Don't Fight the Trend 300 Trade Location Is Key to Long-term Success 301 Adjusting to Volatility 302 Anticipating What Needs to Happen 303 Using Time as Part of Your Risk Management 304 Learning to Control Your Emotions 306 The Hardest Part of Any Strategy Is the Exit 306 Putting It All Together: Two Examples 307 Picking Up the Right Tools 310 Recommended Reading 313 About the Authors 315 Index 319