Index
price to overlay indicator divergence, 346–349
price to price, 338–345
price to seasonal, 344
price to volume, 349–350
relative performance, 345
in relative strength (RS) lines, 800–803
reverse, 282, 291–322 (see also Standard and
reverse divergence)
slope, 282–290
standard, 286, 291–322 (see also Standard and
reverse divergence)
volume, 143, 320–322
Divergence analysis, 116–118
concept of confirmation in, 273–275
continuation and reversal indications in, 278–281
direction in, 268–272
overview, 267
price confirmation in, 323–337
reverse (see Reverse divergence)
slope analysis and, 282–290
trend referencing in, 275–276
wave degrees in, 276–280
Divergent signal alternation, 306, 334, 335, 354
Dojis, 587
Donchian channels, 487
Double bottoms. See Double tops and bottoms
Double distribution day, 668
Double divergence, 313–317
Double filtering, 145
Double smoothing, 440
Double tops and bottoms, 56–57, 500, 509–511,
600–603
Dow, Charles, 45–46
Dow Jones Transportation Average, 46
Dow retracements, 166, 397
Dow Theory, 45–64
basic assumptions of, 46–62
challenges to, 62–64
defining trends, 125–132
market phases, 99–104
Drop-off effect, 254–255
Drummond Geometry, 169
Du Plessis, Jeremy, 622
Dynamic overlay indicators, 239–240
Dynamic sizing systems, 908–910
Early longs, 86
Ease of recovery (EOR), 909
Efficient frontier, 5
Efficient Market Hypothesis (EMH), 15, 31–35
Ego defensive bias, 818
Elliott, Ralph Nelson, 673
Elliott Waves, 120–121, 129, 417–430, 673–685
alternation, 683
corrective triangles, 680
corrective waves, 674, 678–682
diagonal triangles, 676–678
elements of, 673–676
extensions and truncations, 682
in Fibonacci ratio and number analysis, 684
flats, 679
impulse waves, 674
labeling conventions, 675–676
motive waves, 674, 676–678
rules and guidelines, 676
wave equality, 683–684
zigzags, 678–679
EMH. See Efficient Market Hypothesis (EMH)
Ending diagonals, 676–678
Engulfing formations, 549
Entry orders:
behavioral profile-based, 832–833
progression from conservative to aggressive,
833–834
Envelopes. See also Bands
in cycle analysis, 731
functions of, 466–467
Equilibrium crossovers, 243–246
Equity curve, 894, 917–919
Equivolume charts, 74–76
Evening star, 565–566
Event-based filters, 144–145
Exhaustion bars, 226
Exhaustion gaps, 166
Expanded flat correction, 679
Expanding triangles, 523
Expansions, 364–367, 412–414
Expectancy, 890, 892, 897
Expectancy box problem, 909
Expensive longs, 86–87
Exponential Moving Average (EMA), 440, 442,
444–445
Extended column warning, 616–617, 619
Extrinsic bias, 105–107
Extrinsic sentiment bias, 547Fab lines, 163–164
Failed breakout entries, 149
Failure Swings, 56–57
Falling channel, 532–533, 536
Falling wedge, 527, 529
False breakouts, 228–229
Feedback Loops, 814–815
Fibonacci numbers and ratios:
arcs, 414–415
area of application, 394–395
arithmetic scaling, 393–394
calculating potential support and resistance,
371–375, 376–379, 382–383, 385–388
channel expansions, 412–414
chart scaling, 389–393
cloud confluences, 638
clusters, 415–417
confluences, 369, 415–417, 638
converting to percentages, 362
dynamic overlay indicators, 393