Symbols Numerics

%K (fast) stochastic oscillators, 263 %D (slow) stochastic oscillators, 263 5-day moving average, 253-254, 256, 257, 258-260

10-day moving average, 259-260 20-day moving average, 255, 256, 258-260 24-hour electronic trading high and low prices, futures, 36-37 volume, relationship to, 25 30-minute chart, 74-75 200-day moving average, 253

abandoned baby bearish, 229-231 bullish, 199-201 affordability and trading choices, 15 after-hours trading high and low prices, futures, 36-37 volume, relationship to, 25 Alcoa, 170, 171 Altera Corp., 304 Amazon.com, 269 American Express, 310-311 American Stock Exchange (AMEX), 33, 68 Amgen, Inc., 151-152 Analog Devices Inc., 206-207 Apple Computer, 93-94, 168, 169, 276, 292-293

Applebee's International, 221-222 Applied Materials, 268 Archer Daniels Midland, 227-228 Australian dollar currency futures,

129-130, 131-133, 190 automated trendlines, 250

bar charts candlestick chart, compared to, 19, 20,

317-319 defined, 10, 27-28 single line, 28 on Web sites, 53 BEA Systems, 220 bear market, defined, 22 Bear Stearns Companies, Inc., 147 bearish state candlestick charting and patterns, 20-22, 279-290

closing price as body of candlestick, 38 defined, 96 double-stick patterns dark cloud cover, 172-174 doji star, 167-168 engulfing pattern, 156-158 harami, 159-161 harami cross, 161-164 inverted hammer, 164-167 meeting line, 168-172 neck lines, 180-183 piercing line, 172-174 separating lines, 178-180 thrusting lines, 175-177 sell indicators, 279-290 single-stick pattern belt hold, 113 doji, 90-94

gravestone doji, 90-94 long black candle, 84-90 long marubozus, 86-88 technical indicators entry, 280-290 exit, 282-290

moving averages (MA), 310-313 relative strength index (RSI), 279-285

bearish state (continued) technical indicators (continued) reversal candlestick patterns, 279-290 sell indicators, 279-290 short trading, 280-282, 285-290 stochastics, 285-290 trendlines, 303-308 three-stick patterns abandoned baby, 229-231 doji star, 226-229

downside gap filled pattern, 242-245 downside tasuki gap, 240-242 evening star, 226-229 side-by-side black line, 234-237 side-by-side white line, 237-239 squeeze alert, 231-233 three black crows, 223-226 three inside down, 218-220 three outside down, 220-223 winning day, 20 beating the market, 17, 318 being long, 121. See also long trading belt holds, 112-117 BigCharts.com Web site, 52-54 Biotech Holders, 115-116 Bollinger, John (Bollinger band inventor),

265-266 Bollinger bands, 265-266 book about, 1-2

author assumptions, 3 conventions used in, 2 icons, 5 next steps, 6 organization, 3-5 what to skip, 2 Briefing.com, 46 Bristol-Myers Squibb, 209-210 brokers discount, 318, 322 electronic, trial accounts with, 15 electronic communication networks

(ECNs), 20 futures, 35 stock exchanges, 33 TradeStation, 70

uneven playing field for small investors, 321-322 bull market, defined, 22

bullish state belt hold, 113 buy signals harami, 129-130 harami cross, 131-134 long legged doji, 100-101 spinning top, 109-110 technical indicators, 267-277, 292-297 candlestick charting and patterns, 20-22,

272-277, 291-302 closing price as body of candlestick, 38 double-stick patterns doji star, 137-139 engulfing patterns, 124-128 harami, 128-130 harami cross, 130-134 inverted hammer, 134-137 meeting line, 140-142 neck lines, 150-153 piercing line, 142-144 separating lines, 147-150 thrusting lines, 145-147 reversals, 272-277 single-stick pattern doji, 80-84 dragonfly doji, 81-84 long white candle, 74-79 white marubozu, 74-79 stochastics, 272-277 technical indicators buy indicators, 267-277 for buying, 292-297 for confirmation, 292-299 long exit, 294-297, 301-302 moving averages (MA), 297-302 relative strength index (RSI), 267-272 reversal candlestick patterns, 267-277 stochastics, 272-277 stop levels, 294-297, 300-302 trendlines, 292-297 three-stick patterns abandoned baby, 199-201 doji star, 196-198 morning star, 196-198 side-by-side black lines, 207-210 side-by-side white lines, 204-207 squeeze alert, 201-204 three inside up, 188-190, 268-270 three outside up, 191-193

three white soldiers, 193-196 upside gap filled pattern, 214-216 upside tasuki gap, 210-213 as white candle on candlestick chart, 11, 12, 21 winning day, 20 Burlington Northern Santa Fe Corp., 143, 144

buy signals. See also bullish state harami, 129-130 harami cross, 131-134 long legged doji, 100-101 spinning top, 109-110 technical indicators, 267-277, 292-297

calculating moving average (MA), 257 relative strength index (RSI), 261 stochastic oscillators, 263 Canadian dollar futures, 100, 102-103 candlestick charting advantages, 10-11, 18-25 alternative charting methods, compared to, 26-30

bar charts, compared to, 19, 20, 317-320

bearish trends, 20-22

bullish trends, 20-22

components, 11-12, 31-39

data requirements, 321

fundamental information on, 43-48

history of, 18

misconceptions regarding, 317-324 patterns, 12-13

prediction of future price moves, 22-23 price patterns, 23-25 reading ease, 19-20 risks, 25-26

technical analysis, relationship to, 14 understanding trading, 14-16 candlestick patterns about, 12-13 bearish continuation patterns, 303-313 reversal patterns, 279-290 single-stick pattern, 84-94 three-stick patterns, 217-245

bullish continuation patterns, 291-297 reversal patterns, 267-277 single-stick pattern, 74-84 three-stick patterns, 187-216 continuation patterns bearish, 303-313 bullish, 291-297 double-stick patterns bearish, 155-183 bullish, 123-153 reversal patterns bearish, 279-290 bullish, 267-277 single-stick pattern bearish, 84-94 bullish, 74-84

market context dependency, 95-122 three-stick patterns bearish, 217-245 bullish, 187-216 Capital One Financial Corp., 104-105 Caterpillar, Inc., 135, 136 CBOE (Chicago Board Options Exchange), 34

CenturyTel, 236-237

Chartered Market Technician (CMT), 317 charts. See also candlestick charting bar charts candlestick chart, compared to, 19, 20,

317-320 defined, 10, 27-28 single line, 28 on Web sites, 53 creation of BigCharts.com Web site, 52-54 CNBC.com Web site, 54-55 Reuters.com Web site, 56-57 Yahoo! Finance Web site, 50-52 line charts defined, 10, 27 on Web sites, 51, 54-55, 56 point and figure charts, 10, 29-30 Chicago Board Options Exchange (CBOE), 34

Chicago Mercantile Exchange (CME), 33, 34 Citigroup Inc., 312-313

closing price as body of candlestick, 38 as candlestick component, 12, 38-39 defined, 38 closing white marubozu, 79 CME (Chicago Mercantile Exchange), 33, 34 CMT (Chartered Market Technician), 317 CNBC, 180

CNBC.com Web site, 54-55 Coca-Cola, 233

combination technical indicators bearish patterns, 303-313 for confirmation, 303-308 moving averages (MAs), 310-313 for selling, 303-308 short trading entry, 306-308 exit, 306-308, 311-313 stop levels, 311-313 trendlines, 303-308 combined moving average (MA), 258-260 Comcast, 216 commissions, 322 commodities, futures markets brokers, 35

high and low prices, 36 lawnmower example, 35 open interest on candlestick charts, 40-42

price on the open, 32-35 trading day on, 20 components of candlestick charting, 11-12 computers. See software; Web sites confirmation bearish technical indicators, 283, 287, 289, 290,

303-308 three-stick, 234, 236 bullish candlestick patterns, 292-297 double-stick, 123, 134-137, 145-153 technical indicators, 291-299 three-stick, 187, 204, 214 combination technical indicators, 303-308

double-stick, 123, 134-137, 145-153 single stick, 119-122

technical indicators bearish, 283, 287, 289, 290, 303-308 bullish, 291-299 combination, 303-308 three-stick bearish, 234, 236 bullish, 187, 204, 214 trendlines for, 292-297 continuation bearish double-stick patterns, 174-183 downside gap filled, 242-245 downside tasuki gap, 240-242 neck lines, 180-183 separating lines, 178-180 side-by-side black line, 234-237 side-by-side white line, 237-239 single-stick patterns, 88 three-stick patterns, 234-245 thrusting lines, 175-177 bullish double-stick patterns, 145-153 inverted hammer, 134 neck lines, 150-153 separating lines, 147-150 side-by-side black line, 207-210 side-by-side white line, 204-207 three-stick patterns, 204-216 thrusting lines, 145-147 upside gap filled, 214-216 upside tasuki gap, 210-213 double-stick patterns bearish, 174-183 bullish, 145-153 single-stick patterns, 88 three-stick patterns bearish, 234-245 bullish, 204-216 Convergys Corporation, 286 cost money needed to start trading, 318 price of software, 67 real-time data, 68 of trading, 14-15 currency futures, 36-37

lndex 333

dark cloud cover, 172-174 data candlestick charting requirements, 321 integrity of, 108

for Microsoft Excel charts, 57-59 software, 68 day trading, risks of candlestick charting, 25

Dell, 119-120, 174

Devon Energy, 270-271

DIA (Dow Jones Industrial Average ETF),

126, 157, 166 Direct TV, 235-236 direction of trendlines, 249-250 discipline of trading, 15-16 discount brokers, 318, 322 Disney, 195-196

divergencies, relative strength index (RSI),

262-263 dividend dates, as fundamental information, 44-45

doji bearish pattern, 90-94 bullish, 80-84 as change signal, 80 defined, 98, 161 doji star bearish, 167-168 bullish, 137-139 dragonfly doji, 81-84 evaluating, 104-107 gravestone doji, 90-94 harami bearish, 159-161 bullish, 128-130 harami cross bearish, 161-164 bullish, 130-134 long legged, 98-103 long trading, 104-105, 106 market context for, 98-107 short trading, 105-107 double-stick patterns bearish state dark cloud cover, 172-174 doji star, 167-168

engulfing pattern, 156-158 harami, 159-161 harami cross, 161-164 inverted hammer, 164-167 meeting line, 168-172 neck lines, 180-183 piercing line, 172-174 separating lines, 178-180 thrusting lines, 175-177 bullish state doji star, 137-139 engulfing patterns, 124-128 harami, 128-130 harami cross, 130-134 inverted hammer, 134-137 meeting line, 140-142 neck lines, 150-153 piercing line, 142-144 separating lines, 147-150 thrusting lines, 145-147 Dow Jones Industrial Average ETF (DIA),

126, 157, 166 downside gap filled pattern, 242-245 tasuki gap, 240-242 downtrend signal, identifying, 96-97 See also confirmation See also continuation See also reversal See also sell signals See also trading, successful and failing patterns dragonfly doji, 81-84 drawing trendlines, 248-249 DuPont, 244-245

earnings calendar web sites, 46 earnings dates as fundamental information,

45-46 earnings seasons, 38 Earnings.com, 46 eBay, 230

ECN (electronic communication network), 20 Edison International, 200-201, 214-215 efficiency of markets, 318

Electronic Arts, 192 electronic communication network (ECN), 20

electronic resources. See software; Web sites electronic trading, 32-35

EMA (exponential moving average),

255-257 engulfing pattern bearish, 156-158 bullish, 124-128 entry points bearish technical indicators, 282-285 long trading relative strength index (RSI), 268-270 stochastics, 271-274 short trading RSI, 280-285 stochastics, 286-290 technical indicators, bearish, 282-285 eSignal software, 69 ETF (exchange traded funds), 126 Euro currency futures, 111, 127, 171-172,

194-195, 197 evening star, 226-229 Excel software building chart, 59-60 data for, 57-58 format of data, 58-59 moving average (MA) on, 60-62 readability, 65-66 trendlines, 61, 63, 250 volume data, 64-66 exchange traded funds (ETF), 126 exit points bearish short technical indicators, 282-285

bullish long technical indicators, 294-297,

300-302 long trading bullish technical indicators, 294-297, 300-302

relative strength index (RSI), 270-272 stochastics, 274-277 short trading bearish technical indicators, 286-290 combination technical indicators, 306-308, 311-313

relative strength index (RSI), 282-285 stochastics, 288-290 Exxon Mobil, 239, 300-301

failing pattern. See trading, successful and failing patterns fast stochastic oscillators, 263 FedEx Corporation, 143, 144, 212-213 figure charts. See point and figure charts Financial Select Sector SPDR (XLF ETF),

135, 136, 164-165 First Horizon National, 288-289 focus and trader success, 318-317 Ford Motor Company, 306-305 full-time professional traders, 318-317 fundamental information on candlestick charts, 43-48 dividend dates, 44-45 earnings dates, 45-46 legal insider trading, 44, 47-48 stock splits, 46-47 futures markets brokers, 35

high and low prices, 36 lawnmower example, 35 open interest on candlestick charts, 40-42

price on the open, 32-35 trading day on, 20

Gannett, 208-209 gap opening gapped higher, 24 gapped lower, 24 prediction, 22-24 General Electric, 179-180, 295-296 get rich quick, trading to, 321 Globex, 33, 34 Google, 38-40 gravestone doji bearish, 90-94

relative strength index (RSI), 280-281

hammer, 118-122 hanging man, 118-122 harami bearish, 159-161 bullish, 128-130 harami cross bearish, 161-164 bullish, 130-134 Harrah's Entertainment, 241-242 Hewlett Packard Co., 138, 139, 192-193 high price as candlestick component, 11, 12, 35-37 as wick on candlestick, 36 The Home Depot, Inc., 149-150 homework as practice, 15 Homma, Munehisa (rice trader), 18

IBM, 107, 130, 131 Illinois Tool Works, 211-212 Inco, 178, 179

indicators. See technical indicators Ingersoll Rand, 243-244 inside day, 159 Insider Trading Newsletter, 48 Intel, 168-169, 172-174, 225-226, 262, 264, 266

international data on Reuters.com Web site, 56-57 International Paper Co., 146, 241 Internet. See Web sites intraday chart and long white candle,

74-75 intraday trends, 25 inverted hammer bearish, 164-167 bullish, 134-137 Investor's Business Daily, 318

Janus Capital Group, 198 Japanese Candlestick Charting Techniques (Nison), 18

Japanese Yen currency futures, 105, 106,

117, 158 Johnson Controls, 271 JP Morgan Chase, 232

Kohl's Stores, 122

Lane, George (mathematician), 263 left-handed mouse clicking, 49 legal insider trading, as fundamental information, 44, 47-48 line charts defined, 10, 27 on Web sites, 51, 54-55, 56 long black candle, 84-90 long legged doji, 98-103 long marubozus, 86-88 long trading belt hold, 114-117 doji, 104-105, 106 entry relative strength index (RSI), 268-270 stochastics, 271-274 exit bullish technical indicators, 294-297, 300-302

relative strength index (RSI), 270-272 stochastics, 274-277 hammer pattern, 119-120 long white candle, 74-79 low price as candlestick component, 11-12, 35-37

as wick on candlestick, 36

MA (moving average) bearish technical indicators, 310-313 bullish technical indicators, 297-302 calculating, 257 combined, 258-260 defined, 253

exponential moving average (EMA), 255-257

MA (moving average) (continued) on Microsoft Excel charts, 60-62 periods for, 253 simple, 253-255

stochastic oscillators, compared to, 264 as technical indicator bearish, 310-313 bullish, 297-302 overview, 43-44, 253-260 utilizing, 253-260 weighted, 257 market, beating the, 17, 318 market context and trends belt holds, 112-117 confirmation. See confirmation continuation. See continuation dojis, 98-107 hammer, 118-122 hanging man, 118-122 identifying, 96-97 market trend, 96-97 reversal. See reversal single-stick pattern, 95-122 spinning tops, 108-112 state of market, 96 market efficiency, 318 market states, 96

Market Technicians Association (MTA), 317 MarketWatch.com Web site, 46, 108 marubozus long marubozus, 86-88 white marubozu, 74-79 Masco, 280-281 McDonald's, 299 meeting line bearish, 168-172 bullish, 140-142 Merck & Co, Inc., 310-310 MetaStock software, 69-70 Microsoft, 38 Microsoft Excel software building chart, 59-60 data for, 57-58 format of data, 58-59 moving average (MA) on, 60-62 readability, 65-66 trendlines, 61, 63, 250 volume data, 64-66

Millennium Pharmaceuticals, 222-223 momentum, 175 momentum oscillator, 261 money needed to start trading, 318 Monsanto, 238-239 morning star, 196-198 Mortimer, Thomas (commentator), 22 Motorola Inc., 305-306 moving average (MA) bearish technical indicators, 310-313 bullish technical indicators, 297-302 calculating, 257 combined, 258-260 defined, 253

exponential moving average (EMA), 255-257

on Microsoft Excel charts, 60-62 periods for, 253 simple, 253-255

stochastic oscillators, compared to, 264 as technical indicator bearish, 310-313 bullish, 297-302 overview, 43-44, 253-260 utilizing, 253-260 weighted, 257 MTA (Market Technicians Association), 317 myths, 317-324

NASDAQ (National Association of Securities Dealers Automated Quotation System), 33, 68 NBC, 179-180 neck lines bearish, 180-183 bullish, 150-153 New Concepts in Technical Trading Systems

(Wilder), 261 New York Mercantile Exchange (NYMEX), 34 New York Stock Exchange (NYSE) function of, 33 real-time data, 68 trading day on, 20 Nison, Steve Japanese Candlestick Charting Techniques, 18 NYMEX (New York Mercantile Exchange), 34

one-stick patterns. See single-stick patterns O'Neil, William (publisher), 318 open interest, 40-42 opening price as body of candlestick, 32 as candlestick component, 11, 12, 32-35 opening white marubozu, 79 Option Price Authority, 68 orange juice futures, 162-163 overbought or oversold security, 279-280, 285. See also relative strength index (RSI)

paper trading, 15

patterns. See candlestick patterns Peabody Energy, 282-283 Pep Boys, 228-229

%D (slow) stochastic oscillators, 263 %K (fast) stochastic oscillators, 263 periods for moving average (MA), 253 piercing line bearish, 172-174 bullish, 142-144 pit trading, 32-35 Plumb Creek Timber, 275, 276 point and figure charts, 10, 29-30 Post Properties, Inc., 140-141 price of software, 67 price on the close as body of candlestick, 38 as candlestick component, 12, 38-39 defined, 38 price on the open as body of candlestick, 32 as candlestick component, 11, 12, 32-35 professional fees for real-time data, 68 professional traders short trading, 322 success of, 318-319

QQQQ (Nasdaq-100 Index ETF), 293-295

Radio Shack, 283 range bound, 96

readability of Microsoft Excel charts, 65-66 real-time data, 68 relative strength index (RSI) bearish, 279-290 bullish, 268-272 calculating, 261 on candlestick charts, 43, 44 defined, 43, 267-268 entry long trading, 268-270 short trading, 280-285 exit long trading, 270-272 short trading, 282-285 long trading entry, 268-270 exit, 270-272 short trading entry, 280-285 exit, 282-285 stochastic oscillators, compared to, 264 as technical indicator bearish, 279-285 bullish, 267-272 overview, 260-263 resistance level as signal, 89 resources. See Web sites retail stock ETFs, 160-161 Reuters.com Web site, 56-57 reversal bearish abandoned baby, 229-231 dark cloud cover, 172-174 doji star, 167-168, 226-229 double-stick patterns, 155-174 engulfing pattern, 156-158 evening star, 226-229 harami, 159-161 harami cross, 161-164

reversal (continued) bearish (continued) inverted hammer, 164-167 meeting line, 168-172 piercing line, 172-174 squeeze alert, 231-233 technical indicators, 279-290 three black crows, 223-226 three inside down, 218-220 three outside down, 220-223 three-stick patterns, 217-233 bullish doji, 137-139

double-stick patterns, 124-145 engulfing patterns, 124-128 harami, 128-130 harami cross, 130-134 inverted hammer, 134-137 meeting line, 140-142 piercing line, 142-144 squeeze alert, 201-204 stochastics, 272-277 technical indicators, 267-277 three inside up, 188-190, 268-270 three outside up, 191-193 three-stick patterns, 187-204 three white soldiers, 193-196 thrusting lines, 145-147 double-stick patterns bearish, 155-174 bullish, 124-145 fading or moderating trend, 159, 189 single-stick patterns belt holds, 112, 113 doji, 98, 104 hanging man, 121

open interest on candlestick charts, 42 spinning top, 109-110 stochastics, 272-277 technical indicators bearish, 279-290 bullish, 267-277 three-stick patterns bearish, 217-233 bullish, 187-204 risks of candlestick charting, 25-26 Rockefeller, Barbara

Technical Analysis For Dummies, 14, 248 rolling over, 102

RSI (relative strength index) bearish, 279-290 bullish, 268-272 calculating, 261 on candlestick charts, 43, 44 defined, 43, 267-268 entry long trading, 268-270 short trading, 280-285 exit long trading, 270-272 short trading, 282-285 long trading entry, 268-270 exit, 270-272 short trading entry, 280-285 exit, 282-285 stochastic oscillators, compared to, 264 as technical indicator bearish, 279-285 bullish, 267-272 overview, 260-263 rules for trading, 15-16, 164

sell signals. See also bearish state common, 23-24 long legged doji, 102, 103 reversal candlestick patterns, 279-290 technical indicators bearish, 279-290 combination, 303-308 separating lines bearish, 178-180 bullish, 147-150 short-term trading, 318 short-term trends, candlestick charting, 25 short trading bearish technical indicators, 280-282,

285-290

combination technical indicators,

304-306, 310-313 entry bearish technical indicators, 280-282,

286-290

combination technical indicators, 306-308

relative strength index (RSI), 280-285 stochastics, 286-290 technical indicators, bearish, 280-282, 286-290 exit bearish technical indicators, 286-290 combination technical indicators,

306-308, 311-313 relative strength index (RSI), 282-285 stochastics, 288-290 technical indicators, bearish, 286-290 mechanics of, 26 as only for professionals, 322 reversal patterns, 156 technical indicators bearish, 280-282, 285-290 combination, 304-306, 310-313 side-by-side black lines bearish, 234-237 bullish, 207-210 side-by-side white lines bearish, 237-239 bullish, 204-207 simple moving average (MA), 253-255 single-stick patterns bearish doji, 90-94

gravestone doji, 90-94 long black candle, 84-90 long marubozus, 86-88 bullish doji, 80-84 dragonfly doji, 81-84 long white candle, 74-79 white marubozu, 74-79 market context dependency belt holds, 112-117 dojis, 98-107 hammer, 118-122 hanging man, 118-122 market trend, 96-97 spinning tops, 108-112 state of market, 96 slow stochastic oscillators, 263 software. See also Microsoft Excel software data demands, 68 eSignal, 69 MetaStock, 69-70

price, 67 TradeStation, 70 what you will be trading, 68-69 Southern Company, 202, 203 soybean futures, 41-42, 115, 116 S&P 500 (Standard & Poor's 500 Index), 17 S&P 500 (Standard & Poor's 500 Index)

futures, 109-110 specialist, 33 spinning tops, 108-112 squeeze alert bearish, 231-233 bullish, 201-204 standard deviation, 265-266 stochastics bearish technical indicators, 285-290 bullish technical indicators, 272-277 long trading entry, 271-274 exit, 274-277 reversals bearish, 279-290 bullish, 272-277 short trading, 285-290 technical indicators bearish, 285-290 bullish, 272-277 overview, 263-265 stock market, 33 stock screener, 57

stock splits as fundamental information,

46-47 stop orders and levels bearish engulfing pattern, 158 bullish technical indicators, 294-297, 300-302

combination technical indicators,

311-313 failed signal, 78 long black candle, 89 technical indicators, bullish, 294-297,

300-302 trendlines, 213 successful patterns. See trading, successful and failing patterns support, defined, 76

Swiss Franc currency futures, 36-37, 308

T. Rowe Price Group, 224-225 Target, 203 technical analysis art of, 325

backup system development, Red candlestick charting, relationship to, 14 complications and indecision, 325-326 data sources, 326 differing points of view, 324 false signals, 323 multiple charts, 324-325 past results and future performance, 327 ridicule from other investors, 324 science of, 325 as silly system, 317, 326-327 single charts, 324-325 tips, 323-327 Technical Analysis For Dummies

(Rockefeller), 14, 248 technical indicators about, 42-43 bearish entry, 280-290 exit, 282-290

moving averages (MA), 310-313 relative strength index (RSI), 279-285 reversal candlestick patterns, 279-290 sell indicators, 279-290 short trading, 280-282, 285-290 stochastics, 285-290 trendlines, 303-308 Bollinger bands, 265-266 bullish buy signals, 267-277, 292-297 for confirmation, 292-299 exit, 294-297, 300-302 long trading, 294-297, 300-302 moving averages (MA), 297-302 relative strength index (RSI), 267-272 reversal candlestick patterns, 267-277 stochastics, 272-277 stop levels, 294-297, 300-302 trendlines, 292-297 combinations for confirmation, 303-308 entry, 306-308

exit, 306-308, 311-313

moving averages (MAs) and bearish patterns, 310-313 selling signals, 303-308 short trading, 304-313 stop levels, 311-313

trendlines and bearish patterns, 303-308 moving average (MA) bearish, 310-313 bullish, 297-302 overview, 43-44, 253-260 reversal patterns, 279-290 RSI. See relative strength index (RSI) sell signals, 279-290, 303-313 stochastics bearish, 285-290 bullish, 272-277 overview, 263-265 trendlines, 248-250, 291-297 Texas Instruments, 271, 272 three black crows, 223-226 three-day pattern. See three-stick patterns three inside down, 218-220 three inside up, 188-190, 268-270 three outside down, 220-223 three outside up, 191-193 three-stick patterns bearish abandoned baby, 229-231 doji star, 226-229

downside gap filled pattern, 242-245 downside tasuki gap, 240-242 evening star, 226-229 side-by-side black line, 234-237 side-by-side white line, 237-239 squeeze alert, 231-233 three black crows, 223-226 three inside down, 218-220 three outside down, 220-223 bullish abandoned baby, 199-201 doji star, 196-198 morning star, 196-198 side-by-side black lines, 207-210 side-by-side white lines, 204-207 squeeze alert, 201-204 three inside up, 188-190, 268-270 three outside up, 191-193 three white soldiers, 193-196

upside gap filled pattern, 214-216 upside tasuki gap, 210-213 three white soldiers, 193-196 thrusting lines bearish, 175-177 bullish, 145-147 Time Warner, 311-312 Toll Brothers, 121, 176 Toppel, Edward A.

Zen in the Markets, 102 traders electronic trading, 32-35 success of professional, 318-317 uneven playing field for small investors, 321-322 TradeStation software, 70 trading, misconceptions regarding, 317-322

trading, successful and failing patterns abandoned baby, 199-201, 230-231 belt hold, 117-118 cost of, 14-15 discipline, 15-16 doji doji star, 138, 168 dragonfly doji, 83-84 gravestone doji, 92-94 long trading, 104-105, 106 short, 105-107 doji star, 197-199, 227-229 engulfing pattern, 126-127, 157-158 evening star, 227-229 harami, 129, 160-161 harami cross, 131, 162-164 inverted hammer, 134, 164-167 long black candle, 88-90 long legged doji, 101-102 meeting lines, 140-141, 170-171 morning star, 197-199 neck lines, 151, 181-183 paper trading, 15 piercing line, 143-144, 172-174 rules for, 15-16, 164 separating lines, 148, 178-180 side-by-side black lines, 208-210 side-by-side white lines, 205-207 spinning top, 110-112 squeeze alert, 202-204, 232-233

three black crows, 224-226 three inside down, 219-220 three inside up, 189-190 three outside down, 221-223 three outside up, 192-193 three white soldiers, 194-196 thrusting line, 145-147, 176-177 upside gap filled, 214-216 upside tasuki gap, 211-213 trading day, defined, 20 Trading Places (film), 162 Transocean, Inc., 148-149, 163 trend confirmation. See confirmation trend continuation. See continuation trend followers, 145 trend reversal. See reversal trendlines automated, 250

bearish technical indicators, 303-308 bullish technical indicators, 292-297 direction of, 249-250 drawing, 248-249 on Microsoft Excel charts, 61, 63 as stop indicators, 213 technical indicators bearish, 303-308 bullish, 292-297 overview, 248-250, 291-297 trial accounts with electronic brokers, 15 triangle in bullish squeeze alerts, 202 Tribune Corporation, 219 triple-stick patterns. See three-stick patterns two-stick patterns. See double-stick patterns TXU, 274 Tyson,205-206

upside gap filled pattern, 214-216 tasuki gap, 210-213 uptrend signal, identifying, 96-97 See also confirmation See also continuation See also reversal

See also trading, successful and failing patterns

U.S. Steel, 182 U.S. Treasury bonds doji, 105, 106, 138-139 meeting line, 141-142 neck lines, 152-153, 181 short entry points, 279-282 stochastics, 275 three-stick patterns, 189 utility stocks, 202

volatility and gap opening, 22 volume after-hours trading as risk of candlestick charting, 25 on candlestick chart, 39-40 defined, 39

on Microsoft Excel charts, 64-66 Vornado Realty Trust, 289-290

Wal-Mart, 114-115 Wall Street Journal, 1 Web sites BigCharts.com, 52-54 Briefing.com, 46 candlestick resources, 50-57 CNBC.com, 54-55 data integrity, 108 earnings dates and calendars, 46

Earnings.com, 46 Investor's Business Daily, 320 MarketWatch.com, 46, 108 Reuters.com, 56-57 Yahoo!, 108

Yahoo! Finance, 46, 50-52 weighted moving average (MA), 257 white marubozu, 74-79 wick, on candlestick chart, 11, 12 Wilder, J. Welles New Concepts in Technical Trading Systems, 261

Xerox, 286-287 Xilinx, 230-231

XLF ETF (Financial Select Sector SPDR), 135, 136

Yahoo! Finance Web site, 46, 50-52 Yahoo! Web site, 108 Yum! Brands, 297-298

Zen in the Markets (Toppel), 102

BUSINESS, CAREERS & PERSONAL FINANCE

Fundraising

Fundraising

0-7645-9847-3 0-7645-2431-3

HOME & BUSINESS COMPUTER BASICS

0-7645-9847-3 0-7645-2431-3

HOME & BUSINESS COMPUTER BASICS

Also available:

»^Personal Finance For Dummies

»«''Business Plans Kit For Dummies

0-7645-2590-5*

0-7645-9794-9

»«''Resumes For Dummies

»«''Economics For Dummies

0-7645-5471-9

0-7645-5726-2

»''Selling For Dummies

Grant Writing For Dummies

0-7645-5363-1

0-7645-8416-2

Six Sigma For Dummies

Home Buying For Dummies

0-7645-6798-5

0-7645-5331-3

Small Business Kit For Dummies

»''Managing For Dummies

0-7645-5984-2

0-7645-1771-6

»''Starting an eBay Business For Dummies

»''Marketing For Dummies

0-7645-6924-4

0-7645-5600-2

Your Dream Career For Dummies

0-7645-9795-7

0-470-05432-8

Windows Vista duhh^S

0-471-75421-8

0-470-05432-8

0-471-75421-8

Also available:

Outlook 2007 For Dummies

»''Cleaning Windows Vista For Dummies

0-470-03830-6

0-471-78293-9

PCs For Dummies

Excel 2007 For Dummies

0-7645-8958-X

0-470-03737-7

»''Salesforce.com For Dummies

Mac OS X Tiger For Dummies

0-470-04893-X

0-7645-7675-5

»''Upgrading & Fixing Laptops For

MacBook For Dummies

Dummies

0-470-04859-X

0-7645-8959-8

Macs For Dummies

Word 2007 For Dummies

0-470-04849-2

0-470-03658-3

»''Office 2007 For Dummies

»''Quicken 2007 For Dummies

0-470-00923-3

0-470-04600-7

FOOD, HOME, GARDEN, HOBBIES, MUSIC & PETS

Guitar

PUMPES

A Reference for the Rest of Us! ^

0-7645-8404-9 0-7645-9904-6

INTERNET & DIGITAL MEDIA

Also available:

»^Horses For Dummies

Candy Making For Dummies

0-7645-9797-3

0-7645-9734-5

»''Jewelry Making & Beading

Card Games For Dummies

For Dummies

0-7645-9910-0

0-7645-2571-9

»''Crocheting For Dummies

»''Orchids For Dummies

0-7645-4151-X

0-7645-6759-4

Dog Training For Dummies

»''Puppies For Dummies

0-7645-8418-9

0-7645-5255-4

»''Healthy Carb Cookbook For Dummies

Rock Guitar For Dummies

0-7645-8476-6

0-7645-5356-9

Home Maintenance For Dummies

»''Sewing For Dummies

0-7645-5215-5

0-7645-6847-7

»''Singing For Dummies

0-7645-2475-5

DUHHteS I cumies

Also available:

Blogging For Dummies 0-471-77084-1

Digital Photography For Dummies 0-7645-9802-3 »«''Digital Photography All-in-One Desk Reference For Dummies 0-470-03743-1

Digital SLR Cameras and Photography For Dummies 0-7645-9803-1 »«''eBay Business All-in-One Desk Reference For Dummies 0-7645-8438-3

* Separate Canadian edition also available HDTV For Dummies t Separate U.K. edition also available 0-470-09673-X

Available wherever books are sold. For more information or to order direct: U.S. customers visit www.dummies.com U.K. customers visit www.wileyeurope.com or call 0800 243407. Canadian customers visit www.wiley.ca or call 1-800-

0-470-04529-9

0-470-04894-8

0-470-04529-9

0-470-04894-8

Home Entertainment PCs For Dummies 0-470-05523-5 MySpace For Dummies 0-470-09529-6 »«''Search Engine Optimization For Dummies 0-471-97998-8 Skype For Dummies 0-470-04891-3 The Internet For Dummies 0-7645-8996-2 »/'Wiring Your Digital Home For Dummies 0-471-91830-X

or caii 1-877-762-2974. 567-4797.

Lawn Care

Lawn Care

The Secret of A Great Lawn Without Needing a Professional You Can Do It And I Can Show You How! A Great Looking Lawn Doesnt Have To Cost Hundreds Of Dollars Or Require The Use Of A Professional Lawn Care Service. All You Need Is This Incredible Book!

Get My Free Ebook


Post a comment