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This is the only modern, action-oriented and practical guide to trend analysis and prediction for the professional trader. Unlike outdated competitive guides, it fully reflects today’s markets and charting sciences.
Writing for traders with basic knowledge of trends and technical analysis, Michael C. Thomsett introduces advanced analytical tools for recognizing how risks evolve as trends proceed; distinguishing between strong and weak trends; objectively evaluating the health of a stock’s current price levels, trading breadth, and technical condition; and anticipating plateaus, slowdowns, or price reversals.
Thomsett introduces trend prediction based on technical signals such as candlestick reversals, price gaps, and movement through resistance or support, enabling traders to go far beyond mere trend "following." You’ll learn techniques for gaining deeper insights into price change – and into valuable factors such as the angle of price change, trend duration, and offsetting price movements.
You’ll find detailed coverage of trend theory, resistance, support, trendlines and channel lines; patterns and confirmations of both reversals and continuations; broadening and narrowing trends, price jumps; and trends based on volume, moving averages, and momentum.
While other books focus solely on technical price movement, A Technical Approach to Trend Analysis will help you understand the trend itself – and use that insight to manage market risks far more effectively.
Introduction: Defining the Trend 1
Chapter 1: The Theory of Trends--Dow, EMH, and RMH in Context 5
Chapter 2: Statistically Speaking--Trends by the Numbers 31
Chapter 3: Resistance and Support--A Trend’s Moment of Truth 61
Chapter 4: Trendlines and Channel Lines--The Shape of Things to Come 81
Chapter 5: Reversal Patterns--End of the Trend 103
Chapter 6: Continuation Patterns--A Bend in the Trend 141
Chapter 7: Confirmation Signals--Turning the Odds in Your Favor 167
Chapter 8: Consolidation Patterns--The Sideways Pause 187
Chapter 9: Volume Signals--Tracking Price Trends 205
Chapter 10: Mind the Gap--When Price Jumps Signal Change 227
Chapter 11: Moving Averages--Order in the Change 247
Chapter 12: Momentum Oscillators--Duration and Speed of a Trend 261
Chapter 13: Volatility--Marking Risk within the Trend 275
Chapter 14: Fundamentals--Connecting the Two Sides 289
Chapter 15: Overview--Putting It All Together 307
Index of Topics 331
Index of Companies 335