IndexInvestors:
characteristics and behavior, 780–781
crowd irrationality, 781
optimism vs. pessimism, 782–783
seven participatory options, 838
well-informed vs. under-informed, 780–781
Irrational exuberance, 55
Island reversals, 501, 513–515
Japanese candlesticks. See Candlestick formations
Juglar cycles, 719
Keltner bands, 482, 484
Key reversal bar, 218–219
Key reversal day, 217, 219–220
Kijun-sen, 629–630, 633–635, 639–641, 643,
646–649
Kitchin cycles, 719
Knowledge-based bias, 818
Kondratieff cycles, 719
Kurtosis, 745
Lagging indicators, 253
Lane, George, 291, 294, 297
Larger trend, 276–280
Late longs, 87
Leading indicators, 253, 319–320
Left translation, 724
Leverage, 831–832, 833, 836, 892
Limit orders, 146–147, 821
Line charts, 3, 74
Linear regression bands, 484–485
Linear scaling, 79–85
Linearly weighted moving average (LWMA), 440, 442
Liquidate, 9
Liquidity, 90, 719, 814
Location-based sentiment, 105
Logarithmic scaling, 389–393. See also Ratio scaling
Long, defined, 9
Long-term charts, 836, 837
Loss-aversion bias, 819
Low volume reversals, 181
Lucas Series, 358
MACD histogram, 258, 318–319
MACD indicator, 257–258, 259, 317–319
Magee, John, 8
Major trend, 48, 54, 125
Margin debt, 784
Market breadth, 759–777
advance decline (AD) indicator, 765–770
breadth data fields, 762
breadth operations, 763
bullish percent index, 775, 776
components of, 762–765
defining, 759
factors affecting reliability and consistency of
analysis, 761–762
indicators, 765–777
market-breadth fields, 765
McClellan Oscillator, 768–770
New High–New Low Line, 770–771
objectives of market breadth analysis, 760–761
percentage of stocks above a moving average,
774–775
TICK indicator, 773
TICK-TRIN short and longer-term interplay, 774
TRIN indicator, 771–773
volatility index, 775–777
volume-based breadth indicators, 771
Market cycles, 718–719
Market depth, 759
Market discounting, 30–37
vs. efficient market hyphothesis (EMH), 31–35
price vs. value, 37
vs. random walk hyphothesis (RWH), 35–36
real-world discounting, 36–37
repetition of market behavior, 37–38
trend following and, 38–39
Market if Touched (MIT) order, 147
Market on close orders, 148
Market orders, 86–88, 146–147
Market participants, 40–41. See also Client/investor
objectives; Investors
Market participation:
entry and exit orders, 146–148
types of, 145–146
Market phase analysis, 99–124
chart pattern interpretation, 104–112
cycle analysis interpretation, 122–123
divergence and momentum interpretation, 116–118
Dow Theory, 99–104
Elliott Wave model, 120–121
moving average interpretation, 115–116
Sakata’s interpretation, 119–120
sentiment interpretation, 118–119
volume and open interest interpretation, 112–115
Market Profile, 651–671
big picture, 670–671
chart elements, 659–660
daily profile formations, 665–671
defined, 651
double distribution day, 669
initial balance, 659–660
initiative and responsive action, 660–662
market participants, 660–661
neutral day, 668
non-trend day, 666
normal day, 666–667
normal variation day, 667
POC, 656, 669
price-value-value balance, 651–655
profile action points, 669–670
tails, 660
TPO count, 665
TPO lettering, 655–657, 658–659