McMillan's Black Friday Specials!

Enjoy 50% off McMillan's top educational products.* Use coupon code FRIDAY14 at checkout. Offers expire 12/1/14.
Click here for more info »

New Thinking in Technical Analysis

$55.00

"A must for all investors and traders who are interested in a technical approach to the market."

- Alfred H. Kingon - Former Assistant Secretary of the Treasury

Sometimes even the most thorough homework on fundamentals fails to pinpoint the best time to buy a stock or take profits. Technical analysis helps market players predict the price behavior of a stock, commodity, or any financial instrument, giving clues about the course your trade may take in the coming weeks and months. When market timing is of the essence in making logical, informed decisions about your trade's future, technical analysis is the tool.

In New Thinking in Technical Analysis: Trading Models from the Masters, a dozen top authorities reveal their techniques and strategies for successful trading. This book offers market participants a treasury of tools to improve their investment performance, each from a unique and time-tested perspective. Readers will find immense value in the straightforward, user-friendly, application-rich presentation of market dynamics forecasting in this invaluable guide. Enhanced with more than 170 charts and illustrations, New Thinking will become the primary companion of every trader seeking to gain a competitive edge.

Each Chapter Includes:

  • Descriptions of a particular model, what it measures, and the theory behind it
  • Explanation of how the technique works and how it is validated
  • Helpful illustrations, featuring multiple screen images
  • Discussion of each technique's particular value and usefulness as compared with alternative models
  • Examples of how and in what situation the technique is applicable--and when not to use the model

Chapter Topics and Authors:

1. Swing Trading And Underlying Principles Of Technical Analysis - Linda Bradford Raschke
  • Influential Thinkers in Technical Analysis 2
  • General Principles of Price Behavior 16
  • A Trend Is More Likely to Continue Than Reverse 17
  • Momentum Precedes Price 18
  • Trends End in a Climax 19
  • The Market Alternates between Range Expansion and Range Contraction 20
  • Creating Swing Charts 20
  • The Three Types of Trades 23
  • Retracements 23
  • Tests 25
  • Breakouts 26
  • Trade Management 27
2. Forecasting Trends Using Intermarket Analysis - John Murphy
  • Basic Principles 29
  • Commodities versus Bonds 31
  • CRB Index versus Rates 31
  • Oil versus Rates 33
  • Bonds versus Stocks 33
  • Intermarket Sector Effect 35
  • Transports Hurt By Rising Oil 37
  • Other Sector Influences 38
  • Sector Rotation and the Economy 39
  • REITs Turn Up As Technology Turns Down 39
  • From Biotechs to Drugs 41
  • Commodities as Economic Indicators 42
  • Japan's Effect on U.S. Markets 44
  • The Technical Nature of Intermarket Analysis 44
  • Inverted Yield Curve Implies Weakening 46
  • The Evolving Intermarket Model 46
3. Applying Moving Averages To Point And Figure Charts - Kenneth G. Tower
  • Background of Point and Figure Charting 48
  • Basics of Chart Construction 48
  • Consolidation Zones 50
  • Price Objectives 51
  • Constructing Moving Averages on Point and Figure Charts 52
  • Recognizing the Long Consolidation Breakout Pattern 53
  • Identifying Moving Average Reversals 53
  • Distinguishing between Temporary Pullbacks and Tops 57
  • Advantages of Point and Figure Charts over Bar Charts 59
  • When and How to Use the Technique 61
4. Spotting Early Reversal Signals Using Candle Charts - Steve Nison
  • Constructing Candle Lines 64
  • Using Individual Candle Lines 65
  • Doji 66
  • Shadows 69
  • Hammers and Shooting Stars 70
  • Engulfing Patterns 74
  • Windows 76
  • Candles and Risk/Reward Considerations 78
5. Reading The Language Of The Market With Market Profile - Robin Mesch
  • The Cycle of Equilibrium and Disequilibrium 84
  • Daily Profile Shapes 88
  • Normal Days 88
  • Non-Trend Days 89
  • Normal Variation of a Normal Day 91
  • Trend Days 92
  • Profiles of Equilibrium and Disequilibrium Cycles 93
  • Non-Price Control and Price Control Phases 97
  • The 4x4 Formation 98
  • The Four Steps of Market Activity 100
  • Using Market Profile to Create a Buy/Sell Strategy 109
  • Minus Development 115
  • Summary Principles Underlying Market Profile 118
6. Using Oscillators To Predict Trade Opportunities - Tom DeMark
  • Traditional Oscillator Interpretation 120
  • Importance of Duration Analysis vs. Divergence Analysis 120
  • Common Overbought and Oversold Oscillators 121
  • TD Range Expansion Index 122
  • Construction of TD REI 123
  • Using TD REI 125
  • TD DeMarker 1''M 128
  • Construction of TD DeMarker I 130
  • Using TD DeMarker I 130
  • TD DeMarker 11'"' 133
  • Construction of TD DeMarker II 133
  • Using TD DeMarker II 134
  • Key Considerations 136
7. Using Cycles for Price Projections - Peter Eliades
  • Basic Steps in Generating Price Projections Using Offset Lines 139
  • Nominal Price Projections and Terminology 142
  • Key Terms and Concepts 143
  • Guidelines for Projecting When Price Extremes Will Occur 143
  • Applying Market Cycle Projections 145
  • When New Projections Are Generated 148
  • Tips on the Success Rate of Projections 150
  • Cycle Projections Are Either Met or Invalidated over Time 152
  • Offsets for Weekly, Daily, and Intraday Cycle Projections 156
  • Preliminary vs. "Confirmed" Projections 157
  • Adding Cycle Price Projections to One's Toolbox 161
8. Trading With The Elliot Wave Theory - Steven W. Poser
  • History of Elliott Wave Theory 164
  • Description of Elliott Wave Theory 165
  • Recognizing Wave Characteristics 168
  • Applying Elliott Wave Theory 169
  • Multiple Time Frame Analysis 169
  • From Long-Term Trading to Day Trading: The U.S. Stock Market 172
  • Making Money When Your Analysis Is Wrong 182
  • U.S. Bond Market Example 182
  • Flexibility Is Key 184
  • Fine-Tuning Your Elliott Wave Theory-Based Trading 186
9. Trading Volatility In The Options Market - Lawrence McMillan
  • Can You Predict the Market? 189
  • Volatility Trading Overview 190
  • Historical Volatility 192
  • Implied Volatility 195
  • Implied Volatility as a Predictor of Actual Volatility 197
  • Spotting Implied Volatility That Is Overvalued or Undervalued 200
  • Volatility Extremes 201
  • Vega 205
  • Trading Volatility 207
  • Establishing a Delta Neutral Position 207
  • Determining Whether Volatility Is Cheap, Expensive, or Neither 209
  • Buying Volatility 212
  • Selling Volatility 219
  • Key Benefits of Volatility Trading 223
10. Enhancing Technical Analysis By Incorporating Sentiment - Bernie Schaeffer
  • Proper Application of Contrary Thinking 226
  • Interrelationships of Sentiment Indicators with Technicals 229
  • Sentiment Measures 231
  • Qualitative Measures 232
  • Quantitative Measures 237
  • Sentiment at Work: A Case Study 253
  • Stock Market Backdrop 253
  • Sector Timing 254
  • Stock Selection 255
  • Results 256
  • Caveats in Using Contrarian Analysis 257
11. Measuring Investor Sentiment In Individual Stocks - Larry Williams
  • How Investor Sentiment Affects Individual Stocks 260
  • The Basic Rule 261
  • Using the Index 263
  • What Makes the Advisers Too Bullish and Too Bearish? 265
  • Avoiding Pitfalls 268
  • Doing What the Majority Is Not Doing 269
12. Controlling Risk With Money Management Techniques - Courtney Smith
  • The Fixed Fractional Bet 274
  • Place Your Stops, Then Apply the Rules 275
  • Start with Sufficient Capital 276
  • Stay Cool 276
  • Maintain Your Discipline 277
  • Index 279

Product Details

Hardcover: 287 pages
Publisher: Bloomberg Press

List Price: $70.00
Price: $55.00

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

Testimonials*:  Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. You should not necessarily expect the same or similar results.

Performance Results: Past performance results for advisory services and educational products are shown for illustration and example only, and are hypothetical.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.