Contents

1. Introduction ix

2. Basic Concepts and Charting Techniques 1

3. The Definition and Interaction of Trends 15

4. Peak and Trough Analysis and Dow Theory 25

5. Support and Resistance 41

6. Trendlines 57

7. Volume Principles 75

8. Using the Rectangle as a Case Study for

Classic Price Patterns 93

9. Classic Price Patterns 113

10. Triangles, Broadening Formations and Cup

with a handle 139

11. Smaller price Patterns 171

12. One and two Bar Price Patterns 199

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 viii Contents

13. Candle Charts 229

14. Moving Averages 257

15. Envelopes and Bollinger Bands 281

16. Linear Regression Lines and Indicators 297

17. The Parabolic System 307

18. Momentum Principles 321

19. Individual Momentum Indicators Part I 355

20. Momentum Indicators II The KST, the Special

K and the Directional Movement System 383

21. Volume Indicators 413

22. Miscellaneous Indicators 439

23. Market Breadth 455

24. The Concept of Relative Strength 491

25. Financial Markets, the Business Cycle and

Intermarket Analysis. 513

26. The Sector Rotation Process 535

27. Applying Technical Analysis to the Theory

of Contrary Opinion 559

28. Trading Tactics and Emotion Control 579

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