The Day Trader's Guide to Technical Analysis: How to Use Chart Patterns, Level II and Time of Sales to Profit in Electronic Markets

by Lewis, Chris

• ISBN13: 9780071359795
• ISBN10: 0071359796
• Edition: 1st
• Format: Hardcover
• Copyright: 2000-08-01
• Publisher: McGraw-Hill

Summary

A guide for day traders to understanding and applying technical methods such as the analysis of price, volume, and supply/demand imbalance to generate more profit from each trade. Provides complete coverage of several strategies and teaches the rules and benefits of technical analysis. DLC: Day trading (Securities)--Handbooks, manuals, etc.

Table of Contents

Acknowledgments	vii
Preface	viii
Introduction	x
Part I: Preparing the Plan
Why Day Trade NASDAQ Securities?	3	(43)
A manifesto of Independence	4	(1)
Day Trading--What It Is and What It's Not	5	(4)
The Three Phases of the Trading Day	9	(6)
The Discipline of Day Trading	15	(10)
NASDAQ vs. Listed Exchanges for Day Trading	25	(6)
Who Wins and Who Loses in Day Trading?	31	(2)
What Is Technical Analysis?	33	(3)
The Basic Tools of TA	36	(5)
Answering the Criticism and Misperception	41	(5)
Trading Concepts That Have Stood the Test of Time	46	(45)
Dow Theory	46	(6)
The Basics of Trend	52	(3)
Essential Concepts of trend in Security Prices	55	(6)
How to Identify Support and Resistance Price Levels	61	(3)
Common Reversal Patterns	64	(13)
Common Continuation Patterns	77	(11)
Breakouts	88	(3)
Activities to Avoid	91	(44)
Derivatives	92	(4)
Overreliance on Complex Chart Analysis	96	(25)
Overtrading	121	(2)
Trying to Assimilate Too Many Variables	123	(8)
Using the Wrong Tool at the Wrong Time	131	(2)
A Potpourri of Helpful Hints	133	(2)
The NASDAQ Level II Screen	135	(26)
The Components of The Level II Screen	135	(2)
Level II Participants, Market Makers and the ECNs	137	(3)
Look at the Flow Rather Than the Snapshot	140	(7)
The Level II Screen at the Break of an Upward Trend	147	(5)
The Level II Screen at the Break of a Downward Trend	152	(9)
Part II: Putting the Plan into Action
Executions	161	(23)
Using the SOES Execution Route	162	(6)
Why Island (Not Datek) Is the Preferred Route	168	(6)
The Little Helper ARCA and the Other ECNs	174	(2)
SelectNet Can Be a Good Friend	176	(2)
Getting Shorts in the Market	178	(6)
A Trading Week	184	(55)
Assessing the Market Direction: Charting Methods	185	(9)
Assessing the Market Direction: Noncharting Methods	194	(5)
Daily Premarket preparation	199	(6)
Market open Patterns to Look For	205	(7)
Trading the Post-Open Periods	212	(2)
A Sample Trading Week	214	(23)
Evaluation of the Week's Trading	237	(2)
Trading Psychology	239	(18)
Learning to Love stops	240	(1)
Focus on the Process	241	(3)
Obstacles to Trading Success	244	(3)
Forming Your Own Set of Rules	247	(8)
When Things Go Wrong	255	(2)
Keeping Track	257	(10)
Premarket Task Sheets	257	(4)
Screen Layouts	261	(2)
What to Keep Track of on a Daily Basis	263	(1)
What to Keep Track of on a Weekly Basis	263	(2)
Conclusions	265	(2)
Afterword	267	(3)
Index	270