Technical Analysis Plain and Simple Charting the Markets in Your Language

by Kahn, Michael N., CMT

• ISBN13: 9780137042012
• ISBN10: 0137042019
• Edition: 3rd
• Format: Hardcover
• Copyright: 2010-01-13
• Publisher: Ft Pr

Summary

New coverage of today's transformed market environment, info on detecting market bubbles, and guidance for 'Black Swan' unanticipated events bull; bull;The only practical, bite-size, easy-to-use guide to real-world technical analysis: don't just understand charts, translate them into reliable buy/sell decisions! bull;Fully updated for today's market environments, with new coverage of market psychology, sector rotation, and more. bull;By well known technical analyst and Barrons.com columnist Michael N. Kahn Technical analysis offers powerful, objective tools for picking stocks and making money - and in today's market environment, that makes it more indispensable than ever. Unfortunately, most explanations of the subject simply confuse investors instead of enlightening them. In this clear, practical, fully updated book, Barron's technical analysis columnist Michael N. Kahn introduces state-of-the-art technical analysis techniques in simple language that any investor can understand and use. Kahn explains exactly how technical analysis works, then teaches you how to read charts and translate them into actual buy and sell decisions. Along the way, you'll learn how to use technical analysis to complement your current approach to stock selection, discover what makes a stock look promising to technical analysts, and objectively assess both risk and reward. This updated and revised Third Edition contains many new examples reflecting today's transformed market environment, including detailed coverage of recognizing bubbles, including real estate (2006), oil (2008), and bonds (2009). Kahn offers powerful new insights into the relationship between technical analysis and market psychology, as well as crucial, up-to-date guidance on sector rotation for changing markets. He also presents a full chapter on 'when things stop working': how to recognize when usually reliable technical tools are being overwhelmed by 'once-in-a-thousand-year,' 'black-swan'-type events.

Author Biography

Michael N. Kahn, CMT, a Chartered Market Technician, currently writes the twice-weekly column “Getting Technical” for Barron’s Online. Mr. Kahn also produces a daily proprietary technical market newsletter, Quick Takes Pro (www.QuickTakesPro.com). Previously, he was chief technical analyst for BridgeNews, a division of Bridge Information Systems, a leading source of global financial information, transaction services, and network services.

 

He has been a regular guest on the Nightly Business Report on PBS, has appeared on CNBC, and was the editor of the Market Technicians Association newsletter, Technically Speaking. His first book, Real World Technical Analysis, was published in January 1998, by Bridge/Commodity Research Bureau Publishing.

 

Prior to writing technical commentary, Mr. Kahn was a Senior Product Manager for Knight-Ridder Financial before that company was merged into Bridge. He was responsible for the marketing design of several of the firm’s charting software platforms and launched technical analysis coverage for Knight-Ridder Financial News. He was also a coeditor of the Tradecenter Market Letter. Prior to joining Bridge/Knight-Ridder Financial in 1986, Mr. Kahn was a senior municipal bond specialist with Merrill Lynch. He also worked in the Financial Planning Department at Shearson Lehman American Express.

 

Mr. Kahn holds a Bachelor of Arts degree in physics and economics from Brandeis University and a Master of Business Administration from New York University.

Table of Contents

Preface     xxi

About This Book     xxv

How to Get the Most from This Book     xxxi

Part I A Few Things You’ll Need to Know Before You Begin

1 Required Background     3

2 What Is Technical Analysis?     13

3 What Is a Chart?     19

4 Jargon You Cannot Avoid     25

Part II The Core of Chart Analysis

5 Concepts     35

6 What Are Supply and Demand in the Markets?     41

7 The Trend Is Your Friend and So Are Trendlines     47

8 See the Forest and the Trees     55

9 Chart Patterns--When the Market Needs a Rest     63

10 Chart Patterns--When the Market Is Changing Its Mind     73

11 Chart Patterns--Explosions     83

12 Corrections in Perspective     89

Part III Technical Analysis in the Real World

13 What Is There Other Than Price?     97

14 Volume     109

15 Time     117

16 Sentiment     121

17 Fundamental Analysis Really Is Technical Analysis     131

18 Just What Makes a Stock (Bond, Commodity) Look Good?     137

19 Risk Versus Reward--Is This Stock Really Worth It?     149

20 This Isn’t Brain Surgery     161

Part IV The Actual Process of Investing

21 OK, Now Do It!     177

22 How to Know if You Are Wrong     183

23 Sometimes Being Wrong Is Good     187

24 When to Sell     191

25 Bear Markets     203

26 A Word About Your Ego     209

Part V Tools and Case Studies 

27 What Do I Really Need to Get Started?     213

28 Building Your Technical Toolbox     219

29 Final Advice     225

30 Case Study--The Perfect World     227

31 Case Study--The Real World     235

32 Case Study--Bizarro World     249

33 How Good Is Your Broker’s Stock?     253

Part VI Further on Down the Road

34 Introduction to Candlesticks     261

35 Cycles     271

36 Elliott Waves     275

37 Technical Terms You May Have Heard     279

38 Debunking the TV Analyst     299

Fun with Jargon      303

Closing Thoughts     311

Index     313