Trading and Investing in the Forex Markets Using Chart Techniques: (543 Wiley Trading)

The financial markets are made up of people from very diverse backgrounds but whether by long or short term investment these market participants all have a desire to win by varying degrees. Many market participants, especially short term traders are often too interested in the release of some fundamental statement or some rumor or the latest bank recommendations than in the trading price of the asset which leads them to trade and fail because of emotions based trading. The daily price movements, the patterns, the volatility that appear on charts, are for whatever reason, the results of the actions of the crowd. To avoid making decisions based on heightened emotions, it is necessary to create your own plan based on your own analysis. This book has been developed to demonstrate how a few relatively straight forward techniques can create a plan that does not rely on outside investment recommendations and therefore takes the emotions out of trading. The book demonstrates how to interpret the market price action in the shape of forms or patterns and Japanese candlesticks to help you: Find markets that are changing from bullish to bearish and from bearish to bullish Locate entry and exit points Monitor the position for signs of change. The book provides a series of charting techniques involving the use of candlesticks as graphical representations of market price actions in the Foreign Exchange markets. It presents methods of chart technical analysis for medium to long-term investing, in a market where despite strong returns when compared with other asset types, it is difficult to realize a profitable return. The title does not dwell on already-known 'signals' represented by candlestick formations, but concentrates instead on how to confirm these signals by applying a variety of confirmation techniques which form a step-by-step process through the chapters of the book to finish by 'Putting It All Together'.

Table of Contents:
Preface 1 Candlesticks = Signals Introduction Japanese Candlestick Signals The Single Signals Japanese Candlesticks – Double Candlestick Signals Some Candlestick Examples Some Further Candlestick Examples Chart Analysis Exercise 1 Chart Analysis Exercise 1 – Answers Summary 2 Chart Patterns = Opportunity Continuation Patterns Reversal Patterns Bull Flags Bear Flags Bull Pennant Bear Pennant Bull Symmetrical Triangle Bear Symmetrical Triangle Bull Falling Wedge Bear Rising Wedge Inverted Head and Shoulders Continuation Pattern Reversal Patterns Bullish Head and Shoulders Reversal Pattern Bearish Head and Shoulders Reversal Pattern Triple Top Pattern Triple Bottom Pattern The Double Top Pattern The Double Bottom Pattern The Bullish and Bearish “V” Pattern Bullish “V” Top Bearish “V” Bottom The Broadening Top and Bottom Some Chart Pattern Examples Chart Analysis Exercise 2 Chart Analysis Exercise 2 – Answers Summary 3 Buying and Selling = Support and Resistance Levels Support and Resistance Trend Lines Trend Line Channels Intermediate Trend Lines Internal Trend Lines Pivot Lines Predetermined Pivot Highs and Lows Calculated Pivot Lines Fibonacci Levels Chart Analysis Exercise 3 Chart Analysis Exercise 3 – Answers Chart Analysis Exercise 4 Chart Analysis Exercise 4 – Answers Summary 4 Applying Confirmation = Confidence Building Simple Moving Average (SMA) Simple Moving Average Channel Chart Analysis Exercise 5 Chart Analysis Exercise 5 – Answers Momentum Oscillators The RSI Oscillator The Stochastic Oscillator (Slow) The MACD Oscillator Chart Analysis Exercise 6 Chart Analysis Exercise 6 – Answers Chart Analysis Exercise 7 Chart Analysis Exercise 7 – Answers Summary 5 Entry and Exit = Right or Wrong? Climax Volume Pivot Lines for Entry and Exit High/Low/Close and High/Low Calculated Pivot Lines Candlesticks on Short-Term Charts Patterns on Short-Term Charts Summary 6 Putting It All Together = Practice and Patience Finding the Technical Picture Creating the Watch List Money Management Summary A Word on Filters A Word on Recommendations Final Word Appendix Further Reading Index

About the Author :
Gareth A Burgess has over 10 years experience applying chart techniques to investment analysis creating technical views and strategies and is a dedicated private investor himself. He is founder of the chart workshop (www.chart-workshop.de), a provider of technical views for investors. His current research interests are on moving average based signals from which many trading systems are based today. Burgess studied at the University of Liverpool and the University of Konstanz, Germany, and graduated with honours. Burgess also went on to complete a Masters research degree, M.Phil.