Technical Analysis: The Complete Resource for Financial Market Technicians, 3rd edition
Published by FT Press (October 16, 2015) © 2016
- Charles D. Kirkpatrick
- Julie R. Dahlquist
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Already the field's most comprehensive, reliable, and objective guidebook, Technical Analysis, Third Edition has been thoroughly updated to reflect the field's latest advances. Selected by the Market Technicians Association as the official companion to its prestigious Chartered Market Technician (CMT) program, this book systematically explains the theory of technical analysis, presenting academic evidence both for and against it.
Using hundreds of fully updated illustrations and examples, the authors explain the analysis of both markets and individual issues, and present complete investment systems and portfolio management plans. They present authoritative, up-to-date coverage of tested sentiment, momentum indicators, seasonal effects, flow of funds, testing systems, risk mitigation strategies, and many other topics.
Technical Analysis, Third Edition thoroughly covers recent advances in pattern recognition, market analysis, and systems management; new confidence tests; popular methods such as Kagi, Renko, Kase, Ichimoku, Clouds, and DeMark indicators; innovations in exit stops, portfolio selection, and testing; and the implications of behavioral bias; and the recent performance of old formulas and methods. For traders, researchers, and serious investors alike, this is the definitive book on technical analysis.
The definitive guide to technical analysis for professional and individual traders, fully updated to include new techniques and recent market performance
- Now includes 30% new content from two of the field’s leading instructors: Charles D. Kirkpatrick II and Julie Dahlquist
- Selected by the Market Technicians Association (MTA) as the primary text accompanying its prestigious certification program
- Follows a clear, logical, instructionally sound sequence, from beginner concepts to leading-edge techniques
- Wide-ranging coverage includes market indicators, cycles, strength, chart analysis, trend confirmation, testing, trading systems, and much more
- Systematically explains and applies technical analysis theory and charting with hundreds of real-world examples
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Chapter 1: Introduction to Technical Analysis    1
Chapter 2: The Basic Principle of Technical Analysis--The Trend    7
Chapter 3: History of Technical Analysis    21
Chapter 4: The Technical Analysis Controversy    33
Part II: Markets and Market Indicators
Chapter 5: An Overview of Markets    57
Chapter 6: Dow Theory    77
Chapter 7: Sentiment     91
Chapter 8: Measuring Market Strength    143
Chapter 9: Temporal Patterns and Cycles    177
Chapter 10: Flow of Funds    195
Part III: Trend Analysis
Chapter 11: History and Construction of Charts    219
Chapter 12: Trends--The Basics    249
Chapter 13: Breakouts, Stops, and Retracements    281
Chapter 14: Moving Averages    305
Part IV: Chart Pattern Analysis
Chapter 15: Bar Chart Patterns    333
Chapter 16: Point and Figure Chart Patterns    367
Chapter 17: Short-Term Patterns    393
Part V: Trend Confirmation
Chapter 18: Confirmation    439
Part VI: Other Technical Methods and Rules
Chapter 19: Cycles    481
Chapter 20: Elliott, Fibonacci, and Gann    509
Part VII: Selection
Chapter 21: Selection of Markets and Issues: Trading and Investing    533
Part VIII: System Testing and Management
Chapter 22: System Design and Testing    559
Chapter 23: Money and Portfolio Risk Management    589
Part IX: Appendices
Appendix A: Basic Statistics    611
Appendix B: Types of Orders and Other Trader Terminology    639
Bibliography    643
Index    675
- President, Kirkpatrick & Company, Inc., Kittery, Maine--a private firm specializing in technical research; editor and publisher of the Market Strategist newsletter.
- Author of several other books on aspects of technical analysis in the trading markets.
- Adjunct professor of finance, Brandeis University International School of Business, Waltham, Massachusetts.
- Director and vice president, Market Technicians Association Educational Foundation, Cambridge, Massachusetts--a charitable foundation dedicated to encouraging and providing educational courses in technical analysis at the college and university level.
- Editor, Journal of Technical Analysis, New York, New York--the official journal of technical analysis research.
- Director, Market Technicians Association, New York, New York--an association of professional technical analysts.
Julie R. Dahlquist, Ph.D., received her B.B.A. in economics from University of Louisiana at Monroe, her M.A. in theology from St. Mary’s University, and her Ph.D. in economics from Texas A&M University. Dr. Dahlquist has taught at the collegiate level for three decades. Currently, she is an associate professor of professional practice in economics and finance at the M. J. Neeley School of Business at Texas Christian University. Dr. Dahlquist is a frequent presenter at national and international conferences. She is the coauthor (with Richard Bauer) of Technical Market Indicators: Analysis and Performance (John Wiley & Sons) and Technical Analysis of Gaps (Pearson). Her research has appeared in Financial Analysts Journal, Journal of Technical Analysis, Managerial Finance, Applied Economics, Working Money, Financial Practice and Education, Active Trader, and the Journal of Financial Education. She is a recipient of the Charles H. Dow Award (2011) and the Epstein Award (2012). She serves on the Board of the Market Technicians Association Educational Foundation and as editor of the Journal of Technical Analysis. She and her husband, Richard Bauer, have two children, Katherine and Sepp.
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