Index
trading with, 584–587
trend interruptions, 553
trend sentiment influence, 549–550
trigger level and stoploss guidelines, 556
triple patterns, 545–546
tweezer patterns, 551–552
tweezer top, 561–563
upside Tasuki gap, 577–578
Capital Asset Pricing Model (CAPM), 5
Capital sizing, 892–894
Cardinal cross, 704, 708–709
Cash/asset ratio, 784
Catapult Formation, 611–612, 613
Centered moving averages, 728–729
Certainty bias, 817–818
Chaikin Money Flow (CMF), 179, 203, 206, 207
Chaikin oscillator, 179, 204, 206, 207
Channel expansions, 412–414
Channeling/channels, 159–162, 531–537
Chart patterns, 170, 495–540
apex reaction analysis, 538–539
ascending triangles, 519–522
bearish reversal, 497
behavioral elements of, 815–817
bull and bear flag formations, 523–525, 526
bull and bear pennant formations, 525–527
bullish reversal, 497
channels, 531–537
completion, 501
consolidation and non-consolidation-based, 498
continuation, 498
cup and handle, 537–538
descending triangles, 522–523
determining continuation or reversal, 496–498
double tops and bottoms, 500, 509–511
expanding triangles, 523, 524 (see also Broadening
formations)
failure, 501–502
head and shoulder tops, 503–509
identification, 22–28
integrating candlesticks with, 578–579
intrinsic and extrinsic bias in, 105–107
intrinsically bearish, 497
intrinsically bullish, 497
intrinsically neutral, 496
island reversals, 501
in market phase identification, 104–112
minimum price objective, 499–500
multiple tops and bottoms, 500
pattern completion, 500–501
phase-based, 107
price gaps, 539–540
reversal, 497–498
reversal preconditions, 499–502
rising and falling wedges, 527–528, 529
rounding tops and bottoms, 500, 528–531
and scaling, 502
symmetrical triangles, 515–519
triple tops and bottoms, 500, 511–513
underlying behavioral component, 496
V tops and bottoms, 501, 503
Chart scaling, 79–85, 237–239, 390, 393–394, 502
Chart timeframe, 585
Charting, 7–8, 65–97
autoscaling, 69–70
bid-based chart and bid-ask spread, 85–89
chart scaling, 79–85
constant chart measures, 72–89
constant-range charts, 76–77
constant-time charts, 73–76
constant-transaction charts, 78
constant-volatility charts, 78–79
constant-volume charts, 77–78
constructs with no measures of constancy, 79–89
futures contrancts, 89–97
gapping actions, 72–73
mechanics and dynamics of, 65–72
technical data types in, 66–67
three-line break charts, 79
Chartists, 66
Chikou span, 630–631, 634–637, 639–641, 643, 926
Chronological approach to standard divergence,
311, 312
Classical divergence. See Standard divergence
Classical technical analysis, 11–12
Client/investor objectives, 826
long-term investor, 836
medium-term bullish or bearish trader, 836–837
reconciling technical outlook with, 846
seven participatory options, 838
short-term bullish or bearish trader, 837–838
technical data use in support of, 923-931
Closing prices, recognition of, 62, 63
Clusters, 415–417
bullish and bearish, 852
dynamic, 860–865
identifying, 852–853
price-time confluences, 867–870
reliability of, 850–851
static, 854–860
time, 865–867
CMF. See Chaikin Money Flow (CMF)
Cognitive dissonance, 814, 822–823
Collinearity, 245
Commitment of Traders report (COT), 207–208
Commodities, 688–689, 706, 718–719
Commodity Channel Index (CCI), 18, 132, 301
Common divergence. See Standard divergence
Common gaps, 166
Commonality, principle of, 722–723
Complex divergence, 317
Complex flat correction, 683
Compounding, 884, 904–905, 912
Confirmation, 841, 845. See also Price confirmation
Confirmation of averages, 57–60, 63
Confirmatory bias, 819