Technical analysis is one of the most effective methods for improving any investor's returns, regardless of their market knowledge or expertise. Technical Analysis for the Rest of Us shows you why as it describes the tools of technical analysis and explains how you can use each to improve your investment selection and performance in every type of market.

Clifford Pistolese is the author of the bestseller Using Technical Analysis. A successful trader, he formerly held executive positions with several Standard & Poor’s 500 corporations.

Preface

xiii

Basic Concepts of Technical Analysis

1

(18)

Introduction

1

(1)

Supply and Demand

1

(1)

Upward Price Trend

2

(1)

Downward Price Trend

3

(1)

Trading Range

4

(1)

Head and Shoulders

5

(1)

Double Top

6

(1)

Rounding Top

7

(1)

Symmetrical Triangle

8

(1)

Ascending Triangle

9

(1)

Descending Triangle

10

(1)

Inverted Head and Shoulders

11

(1)

Rounding Bottom

11

(2)

Double Bottom

13

(2)

Parabolic Curve

15

(1)

Flat Line Formation

16

(1)

Erratic Volatility

16

(1)

Match-Up Exercise

16

(1)

A Note of Caution

16

(3)

Volume Analysis

19

(22)

Introduction

19

(1)

Average Volume Data

20

(1)

Trading Volume and the Stock Market

20

(1)

Stock Price and Trading Volume Charts

20

(10)

Review Exercise

30

(11)

Moving Averages

41

(16)

Introduction

41

(1)

Construction of a Moving Average

41

(1)

Exponential Moving Average

42

(1)

Stock Prices and Moving Averages

42

(9)

Stock Price Falls Through Moving Average

42

(1)

Stock Price Rises above Moving Average

43

(1)

Moving Average Follows Stock Price Up

44

(1)

Moving Average Follows Stock Price Down

44

(1)

Short Average Rises above Long Average

45

(1)

Short Average Falls Through Long Average

46

(1)

Stock Price Goes Up Through Short and Long Averages

47

(1)

Stock Price Goes Down Through Short and Long Averages

48

(3)

Review Exercise

51

(6)

Portfolio Management

57

(24)

Introduction

57

(1)

Dealing with Market Phases

57

(2)

Selecting Stocks and Funds for an Aggressive Portfolio

59

(5)

Inverted Head and Shoulders

59

(1)

Double Bottom

60

(2)

Rounding Bottom

62

(2)

An Aggressive Portfolio

64

(1)

A Balanced Portfolio

64

(2)

World Income Funds

64

(2)

National Municipal Bond Funds

66

(1)

Investment-Grade Bond Funds

66

(1)

A Conservative Portfolio

66

(2)

Zero Coupon Bonds

67

(1)

General Obligation Municipal Bonds

68

(1)

Review Exercise

68

(13)

Technical Analysis and the Stock Market

81

(18)

Introduction

81

(1)

Active Trading

81

(1)

How Technical Analysis Can Help

82

(6)

Buy and Hold Investing

88

(1)

Intermediate-Term Trading

89

(1)

Review Exercise

90

(9)

Technical Analysis and the Internet

99

(10)

Introduction

99

(1)

Yahoo! Finance Web Site

99

(2)

Clear Station Web Site

101

(1)

StockCharts.com Web Site

102

(1)

Big Charts Web Site

103

(1)

Application Exercises

104

(5)

Section 1

104

(2)

Section 2

106

(3)

Analyzing Closed-End Funds

109

(18)

Introduction

109

(1)

Closed-End Fund Analysis

110

(6)

Guidelines for Trading Closed-End Funds

116

(1)

Closed-End Fund Association Web Site

117

(1)

Application Exercise

118

(1)

Section 1

118

(1)

Section 2

119

(1)

Section 3

119

(1)

Section 4

119

(1)

Review Exercise

119

(8)

Analyzing Preferred Stocks

127

(18)

Introduction

127

(1)

Selecting Preferred Stocks

128

(1)

Trading Preferred Stocks

129

(5)

Review Exercise

134

(11)

Analyzing Real Estate Investment Trusts (REITs)

145

(4)

Introduction

145

(1)

Characteristics of REITs

145

(1)

REITs Holding Real Properties

146

(1)

Application Exercise

146

(3)

Final Review Exercise

149

(24)

Appendix A. List of Illustrations

173

(4)

Appendix B. Glossary

177

(6)

Appendix C. Helpful Web Sites

183

(4)

Appendix D. Bibliography

187

(2)

Index

189

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