*** Third edition. Many improvements have been added to previous versions ***
- Improvements for the buy and sell signals on charts
- A glossary of technical analysis terms
- An alphabetical index
- A new layout
It’s strange to observe that in an age where information is so abundant and easy to access, a very small number of investors understand how to use stock charts. Many believe that the up-and-down level of a share is strongly connected to a company’s profitability. Either because of doubt or a lack of understanding, most traders and investors trust their friends, colleagues or pseudo-specialist gurus to help them make good trading and investment choices.
This book has been written to help the new traders who trust blindly in those close to them, their colleagues or financial gurus, and want to understand chart patterns before investing in stocks.
Take control of your investments
Technical Analysis for Beginners Part One is easy to understand, and it addresses the people who want to use tools that allow detection of buy-and-sell signals.
This book includes more than 100 examples, figures and tables that will help understand investments visually. Several stock market charts show entry points, exit points and even false signals.
Dummies need to understand technical analysis
The best way to foresee the future is to analyze the past. This book is a guide to avoiding many traps in the financial markets. I will show you how to use the stock market charts and how to enrich them with indicators, which will allow you to enter and exit the market at the right time.
Know how to spot the market’s trend
Numerous examples show you how to highlight the trend, the support, the resistance and the trend channel, as well as the positive and negative divergences and the candlestick patterns.
Identify breakout and breakdown
The term "breakout" is associated with multiple upward figures and marks the debut of a new rising trend. Learn to detect and use breakout to make good selections of stocks.
Identify bullish and bearish patterns
Some patterns allow anticipating a configuration or a trend reversal. The examples are improved with comments and symbols that facilitate comprehension.
Know how to use the different types of indicators
There are a great number of technical indicators. New ones are created each year. However, you should limit their use and make a choice among the four families of indicators that follow:
- Trend indicators
- Momentum indicators
- Volatility indicators
- Volume indicators
Avoid traps, errors and false signals
Technical analysis cannot guarantee 100 percent success. The traps can be detected on a graph, but they can also come from the ones that make purchase recommendations to you, such as people that provide pump-and-dump scenarios or stock promoters from the web. Graphic analysis of the shares is essential before any investment.
Understand the market’s emotional cycle
It’s difficult to leave your emotions aside when your portfolio has lost 10 percent in just one day. Don’t put yourself in vulnerable situations. Keep your emotions balanced by investing at the appropriate moment.
ALSO AVAILABLE. In order to reduce printing costs and the selling price, Technical Analysis for Beginners – A Practical Guide for Charting, brings together two previously published books:
- Technical Analysis for Beginners Part One – Stop Blindly Following Stock Picks of Wall Street’s Gurus and Learn Technical Analysis
- Technical Analysis for Beginners Part Two – Riding the Stock Market Cycle