Table of Contents

Introduction: The Journey xi

About the Author xv

PART I THE FOUNDATION OF TECHNICAL ANALYSIS 1

Chapter 1 Why Technical Analysis? 3

Chapter 2 The Language of Trading 9

Chapter 3 The Cornerstone 15

Chapter 4 The Dow Theory 19

PART II KEY CONCEPTS OF TECHNICAL ANALYSIS 27

Chapter 5 Common Types of Charts 29

Chapter 6 Support and Resistance 39

Chapter 7 Trends and Trend Lines 51

Chapter 8 Volume 61

Chapter 9 Gaps 77

PART III PRICE PATTERNS 93

Chapter 10 Reversal Chart Patterns 95

Chapter 11 Continuation Patterns 117

Chapter 12 Additional Chart Patterns 133

PART IV CANDLESTICK PATTERNS 141

Chapter 13 Candlestick Charting Patterns 143

Chapter 14 Continuation and Indecision Candlestick Patterns 169

PART V FIBONACCI 181

Chapter 15 Fibonacci Trading Techniques 183

PART VI TECHNICAL INDICATORS 199

Chapter 16 Moving Averages 201

Chapter 17 Moving Average Envelopes and Bollinger Bands 215

Chapter 18 Oscillators 223

Chapter 19 Average True Range (ATR) 243

Chapter 20 Complex Indicators 253

PART VII OSCILLATORS 259

Chapter 21 Point and Figure Charting 261

PART VIII ATR, ADX, AND PSAR 285

Chapter 22 Cycles and Tendencies 287

PART IX CYCLES 305

Chapter 23 Sentiment Indicators 307

PART X POINT AND FIGURE CHARTING 321

Chapter 24 Psychological Aspects of Technical Analysis 323

Chapter 25 Understanding Bubbles 333

Chapter 26 Trading versus Reality 339

PART XI ODDS AND ENDS 347

Chapter 27 Unconventional Patterns 349

Chapter 28 Combining Technical and Fundamental Analysis 353

PART XII BEHAVIORAL ASPECTS OF TECHNICAL ANALYSIS 359

Chapter 29 Final Thoughts on Technical Analysis 361

Index 363

About the Author

ED PONSI is the managing director of Barchetta Capital Management LLC. An experienced professional trader and money manager, Mr. Ponsi has advised hedge funds, institutional traders, and individuals of all levels of skill and experience. He has made hundreds of appearances on national and international networks such as CNN, CNBC, the BBC, and Bloomberg. A dynamic public speaker, Mr. Ponsi has lectured audiences around the world, in locations such as London, Singapore, and New York City.