Charting and Technical Analysis

This page contains numbered chapters of a textbook on charting/technical analysis and below that, other articles about charting/technical analysis I have written.

All files are in PDF format.

Other than the numbered chapters of the charting and technical analysis textbook, articles are listed alphabetically by title and include a description of their content.

Order articles alphabetically or by creation date, newest first.

01 Introduction to Technical Analysis
Defines technical analysis and the assumptions upon which it is based
02 Dow Theory
Explains the basic tenets of Dow Theory
03 Short Term Bar Chart Analysis
Discusses chart construction, the meaning of bar components, analysis of the closing price, the range and reversal signals
04 Longer Term Bar Chart Analysis
Discusses trend analysis, trend lines and channels, support and resistance and gap analysis
05 Volume Analysis
Discusses analysis of volume, on balance volume and equivolume charting
06 Chart Patterns
Introduces chart patterns and discusses reversal patterns, continuation patterns and patterns with a dual role
07 Introduction to Indicators
Introduces the two basic types of indicator and explains important concepts including oscillator, momentum, overbought and oversold.
08 Trend-Following Indicators
Discusses moving averages, Parabolic and Directional Movement
09 Momentum Oscillators
Discusses oscillators in general, revisits the Moving Average Oscillator, explains Momentum and Rate of Change, Relative Strength Index and Stochastic Oscillator
10 Other Trend and Momentum Indicators
Discusses Moving Average Convergence-Divergence, MACD Histogram, Percentage Bands and Bollinger Bands
11 Bringing it All Together
The final chapter that discusses using technical analysis, time frame, top-down analysis, stop orders and trading models
Analysing Chart Patterns
Recognising Evolving Patterns
Analysis of the Closing Price
A detailed look at this important price
Andrews Pitchfork
Stock market trends tend to oscillate around a median line. This article shows a simple tool to track this tendency
Arms Index
A tool for short term traders
Avoid the Self-Destructive Investment
Invest with a safe size
Be Ready for the Top
The three bull market endings
Bear Markets
How to Get Out
Bear Markets
What to expect
Bollinger Bands
How to use this indicator
Bull and Bear Markets - Using Dow Theory
A discussion of how a monthly line chart can be useful in Dow Theory
Bull Market Entry
How to get set for the uptrend
Bull or Bear
It should not be difficult to know
Candlestick Charting
A mini-course that explains the basic principles of candlestick chart analysis
Candlestick Charting
An introduction
Closing Price - Basic Analysis
How to interpret the most important prices of the day
Closing Price and Key Reversals
Discusses two important short term reversal signals
Continue or Reverse?
Continuation and reversal patterns
Coping with Crisis
Watch the charts
Coppock - Wisdom and Indicator
Summarises Coppock's wisdom about investing and explains the calculation and use of his eponymous indicator
Coppock Indicator
How it is calculated and used
Defining the Trend
To profit from trends, we must know when they are present
Directional Movement System
Double Top Reversal Patterns
How they develop and what is happening
Dow Theory - The Best Time to Buy
Two examples of the best time to buy
Fibonacci Numbers
Discussion of Fibonacci numbers
Hammer and Hanging Man Patterns
Hook Reversal
A signal to tighten stops
Hot Stocks Under One Dollar
Two case studies of low-priced fallen angels
How to Buy Great Stocks
How to Buy into Explosive Moves
Explains the dynamics of trading ranges
Identifying Trends
How to define and trade trending bars
Introduction to Indicators
Introduction to Moving Averages
Investing with Bollinger Bands
Investing with MACD
Investing with RSI
Investing with Stochastic
Island Reversal and Island Cluster Reversal
Dramatic days to live through
Kangaroo Tail Pattern
You can tell which way they will jump
Key Reversal
A price bar not to be ignored
Mind the Gap
How to interpret gaps on bar charts
Money Flow Index
Explains the calculation and interpretation of this indicator
Moving Average Convergence Divergence (MACD)
Moving Average Envelope
How to trade or invest in up trends
Moving Average Filters
How to use two moving averages
Moving Averages
Explains moving averages, how they are calculated and used
Multiple Moving Averages
New Floats
How to read the charts of new floats
New Floats Indicator
Open Close Reversal Signals
Parabolic
Gives calculated stop loss levels
Parabolic and Other Stops
Ways to exit explosive trends
Parabolic Time-Price System
Preparing for a Bull Market
Price Bar Components
Unlocking the information in price bars
Price Bars - Their Meaning
Discusses what the components of a price bar tell us about buyers and sellers
Range
Understanding its Importance
Relative Strength (1)
It pays to invest in the strongest stocks
Relative Strength (2)
Relative Strength Index (RSI)
How to use this popular indicator
Resistance
Explains the concept of resistance and how it is used
Reversal Patterns
Stock market trends tend to finish with common patterns. This article shows action points for common patterns
Reversal Patterns - Bull Market Top
RSI: Buy Smart, Buy Low
Short Term Reversal Signals - Pivot Points
Short Term Trend Analysis
Discusses how an understanding of the definition of trends can warn of impending change
Stop Loss Levels - How to Set Them
Stop loss setting and tactics
Support
Explains the concept of support and how it is used
Support and Resistance
Explains how they form and how to use them
Swing Charts
How they are constucted and how to trade them
Terror in the Markets
Analysing unusual situations
The Trend is Your Friend
How to identify bars that show strength or weakness
This Stock will Self-destruct
How to see a disaster coming
Three Bear Bottoms
Models for how bear markets finish
Time to Go
Dealing with the End of a Bull Market
Today's Chart, Tomorrow's Roadmap
Finding growth model stocks
Trading Momentum with RSI
Discussion of methods of using RSI to trade momentum
Trend Channels
Shows how trend channels are constructed and used
Trendlines
Triple Moving Average System
How to catch explosive moves
True Range
Chart indications that can be hard to see
Turning Point
Two Powerful Candle Patterns
Upthrusts and Springs
Learn to spot potentially failed breakouts
Uptrends: How to Enter Them
Discusses some of the ways to enter uptrends
Watch Out for Rejection
Signs of imminent trend endings
Which Dow Theory Phase?
Explains the three phases of a bull market
Why Size Matters
Not too big and not too small can be best for private investors