Advanced Charting Techniques for High Probability Trading The Most Accurate And Predictive Charting Method Ever Created

by Hooper, Joseph R.; Zalewski, Aaron R.; Watanabe, Edwin L.

• ISBN13: 9781118435793
• ISBN10: 1118435796
• Format: Hardcover
• Copyright: 2013-02-18
• Publisher: Wiley

Summary

Advanced charting techniques have historically not been a part of the Compound Stock Earnings method. Rather, the focus of the CSE method has been to understand simple bias in stock price direction and to act accordingly. When a stock is high in its current cycle, the bias is down. When a stock is low in the current cycle, the bias is up. To understand this bias, a simple straight line (or open high low close) chart is used. This method of understanding simple bias has been applied, and proven successful, for years using the CSE Covered Call, LEAPS and Credit Spread techniques. This book will utilize charting to identify the four phases of a cycle--the Birth, Momentum, Exhaustion and Death Phases, and to reap the benefits of getting in and out of a stock in order to maximize profits.

Author Biography

Joseph Hooper (Fort Worth, TX) has been a property developer, stockbroker, and bank owner. He founded Compound Stock Earnings 11 years ago - coming out of retirement. As president of CSE, Hooper is now a full time investor, financial educator, and one of the world's foremost experts on Covered Calls. In the early 1980s Hooper purchased two banks, directed their operations, and then sold them in the early 1990s. He joined Merrill Lynch as a private client advisor where he used his covered calls technique for client accounts. At Merrill, he developed the "Interest Rate Differential Yacht Financing" the success of which led him to be the highest funds originators for the company.

Aaron Zalewski has a career background in the finance industry where he worked as an Analyst covering both Equity Capital Markets and Merger and Acquisitions transactions for a major Australian investment bank. Aaron is Co-Author of the Compound Stock Earnings book series including Covered Calls: A Wealth Option and LEAPS to Wealth. Along with Joseph Hooper, he also co-hosts Compound Stock Earnings weekly financial talk back radio program "UNCONVENTIONAL WI$DOM - The CSE Investment Show" which airs live every Saturday morning on KRLD 1080 AM in Dallas.

Ed Watanabe is a charting specialist at Compound Stock Earnings.

Table of Contents

Preface

Chapter 1: Introduction to Advanced Charting

Why Use Charting?

Advanced Charting Techniques

Validating the V

Advanced Charting Upper and Lower Indicators

Chapter 2: Straight Line Chart

Straight Line Charting / Parallel Channels

Chapter 3: Direction of a Trend

Four Phases of a Cycle

Moving Averages Defined

Moving Average 1 – Lead MA1 (white) M1

Moving Average 2 – M2 (green)

Moving Average 3 – M3 (blue)

Chapter 4:  Moving Average Crossovers

M1 (white) Crossing M2 (green).

M1 (white) Crossing M2 (green) and Then Crossing M3 (blue)

12 Key Points of M1, M2, and M3 Crossovers

Supplementary Moving Averages

Chapter 5: Bollinger Bands, PSAR, Channels, Zones, and FTL

PSAR

Channel Indicators – C1, C2, C3

Zones

Friday Target Line – FTL

Chapter 6: Putting It All Together – MAs and the BBs

Window 1 – Chart 1 Analysis

Chapter 7: Lower Chart Indicators L1 through L4

Defining the Lower Chart Indicators

Chapter 8: The Second Chart—Window 2—Chart 2

Modified Candle

Understanding the Modified Candle

Pivot Points – Support and Resistance

Second Chart Lower Indicators – L5—L8

Chapter 9:  Recap of Advanced Charting

Entering New Positions on the Roll Up Above M2

The Roll Up Below M2

The Touch / Convergence – Example 1

The Touch / Convergence – Example 2

The True V / Double V

Enhancing the KADD and the 10 Cent Rule

Entering New Position on the Roll Up

Upward Momentum Confirmed

Exit the Position When Price Tic Falls Through M1

TSS for Income

TSS—Stacked Up with M1 Rolling Down.

TSS—Upward Moving M1 and Roll at M2

When to Buyback a TSS

TSS—Upward Moving M1 and Roll at M2

Chapter 10: RS – Advanced Charting Relative Strength Indicator

Conclusion

Free Trial Software

About the Authors

Index