New Frontiers in Technical Analysis Effective Tools and Strategies for Trading and Investing

by Ciana, Paul

• ISBN13: 9781576603765
• ISBN10: 1576603768
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-09-27
• Publisher: Bloomberg Press

Summary

An engaging overview of today's most effective technical analysis tools and techniques Technical analysis helps market players predict the price behavior of a stock, commodity, or other financial instrument, giving clues about the course your trade may take in the coming weeks and months. This approach to the markets has proven itself time and again, and now, with Bloomberg on Technical Analysis, you'll discover how to put it to use in your everyday trading endeavors. Filled with in-depth insights and expert advice, Bloomberg on Technical Analysis pulls together the expertise of market professionals, analytics from Bloomberg, and the knowledge of the author himself, an experienced technical analyst who deals with traders and investors every day, to present the most up-to-date information in this field. Reviews technical indicators that traders have found to be extremely useful Taps into one of the author's great strengths: his extensive day-to-day interaction with financial professionals Contains a detailed analysis and explanation of two informative technical analysis studies performed by Bloomberg technical analysts Written with the serious trader in mind, Bloomberg on Technical Analysis offers you the tools you need to improve your performance and make the most out of your time in today's markets.

Author Biography

PAUL CIANA is an Application Specialist at Bloomberg LP where he consults with market participants on developing technical strategies, directs a week long class on technical analysis and proposes the development of new technical tools on Bloomberg. He is the author of the Bloomberg Global Technical Strategy report and contributes quarterly to Bloomberg Markets magazine. He has guest presented at the Traders Expo, Market Technicians Association Annual Symposium, International Federation of Technical Analysts Annual Conference, CFA Institute, MBA programs, and many Bloomberg events. He is the New York Chapter Chair of the Market Technicians Association and is an instructor in the CMT Institute. He graduated from the University at Albany with honors, majoring in finance and management, and minoring in economics.

Table of Contents

preface	p. xi
Acknowledgments	p. xv
Evidence of the Most Popular Technical Indicators	p. 1
Defining Technical Analysis	p. 2
Defining Chart Types	p. 5
Evidence of Chart Type Popularity	p. 10
Evidence of Technical Indicator Popularity	p. 14
Applying the Most Popular Technical Indicators	p. 18
Conclusion	p. 45
Everything Is Relative Strength Is Everything	p. 49
"This Time It's Different"	p. 50
What Is Comparative Relative Strength?	p. 51
The JdK RS-Ratio and JdK RS-Momentum	p. 65
Relative Rotation Graphs	p. 75
Conclusion	p. 83
Applying Seasonality and Erlanger Studies	p. 85
Testing for a Valid Seasonal Cycle	p. 86
Applying Cycles as a Strategy	p. 94
Monitoring Seasonal Data	p. 101
Erlanger Studies: The Art of the Squeeze Play	p. 108
Kase StatWareÖ and Studies: Adding Precision to Trading and Investing	p. 155
Introduction to KaseSwing	p. 157
Kase DevStops	p. 169
Kase Momentum Divergence Algorithm	p. 177
Kase PeakOscillator and KaseCD	p. 188
Why Use KasePO and KaseCD?	p. 189
Kase Permission Stochastic and Screen	p. 199
Entering Trades and the Kase Easy Entry System	p. 201
About the Kase Easy Entry System	p. 206
Trading with Kase StatWare	p. 209
Kase Bar Chart (Equal TrueRange Bar Chart)	p. 211
Summary	p. 215
Rules-Based Trading and Market Analysis Using Simplified Market Profile	p. 217
Technical Analysis Is Simple in TheoryùDifficult in Practice	p. 218
Rules-Based Trading: Automated Strategy Trading versus Discretionary Trading	p. 221
Balance versus Imbalance: Distinguishing the Two Phases of Market Activity	p. 222
There Are Only Three Market Segments: Nontrending, Uptrending, and Downtrending	p. 224
Four Market Participantsùand Then a Fifth...	p. 228
Market Profile	p. 231
Market Movement: The Four Steps of Market Activity	p. 234
Market Structure	p. 236
The Relative Speed of the Market's Building-Block Components	p. 239
Vertical Nondevelopment ("Minus Development")	p. 240
Simplifying Market Profile	p. 245
Tas PRO VAP Map	p. 247
Rules-Based Trading and Analysis with TAS PRO Navigator	p. 255
TAS PRO Indicator Application Examples	p. 257
Conclusion	p. 280
Advanced Trading Methods	p. 283
From the CBOT to the Charts	p. 283
Trading by Gut Feeling	p. 287
Understanding the Background of an Opportunity
They Say Entry Is Easy, but Not in My Book	p. 295
Trade When the Odds Are in Your Favor	p. 299
Don't Fight the Trend	p. 300
Trade Location Is Key to Long-term Success	p. 301
Adjusting to Volatility	p. 302
Anticipating What Needs to Happen	p. 303
Using Time as Part of Your Risk Management	p. 304
Learning to Control Your Emotions	p. 306
The Hardest Part of Any Strategy Is the Exit	p. 306
Putting It All Together: Two Examples	p. 307
PickingUp the Right Tools	p. 310
Recommended Reading	p. 313
About the Authors	p. 315
Index	p. 319
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