IndexPrimary trends, 48–51
distinguishing from secondary trends, 63
manipulation of, 63
phases of, 53–55, 99–104
primary bull trend, example, 55, 56
Program trading, 14, 26, 38, 192
Projections, 367–368
Proportional stopsizing, 153–154
Proportionality, principle of, 723
Prospect theory, 817
Protective stops. See Stoploss orders
Provisionary trendlines, 155
Public short ratio, 784–785
Put/call ratio, 787, 788
Random entries, 149
Random walk hypothesis (RWH), 35–36
Random walk process, 14
Range extension, 660, 666, 667–668
Ranging action, 821
Rate of change of volume (ROC), 179
Rate of change (ROC) oscillator, 256
Ratio adjusting, 763–764
Ratio scaling, 79–85
Reading lists, 933-935
Real-world discounting, 36–37
Reflixivity, 815
Regression line, 8, 18, 269, 349, 484–485, 691,
795, 861
Regret bias, 818
Regular divergence. See Standard divergence
Relative performance divergence, 345
Relative Strength Index (RSI), 262
Relative strength indicator (RSI), 118
Relative strength (RS) analysis, 624, 793–811
bullish and bearish divergence, 800–803
examples, 803–810
price confirmation, 795
ratio method vs. relative difference method, 794
relative strength lines, 795–800
technical analysis application, 794
terminology, 796
top-down approach, 810–811
Relative strength (RS) lines, 795–796
bullish and bearish divergence, 800–803
construction, 796–799
directional implications of, 799–800
Relative value bands, 477–478
Relative volume, 190–191
Renko charts, 76–77, 80
Representativeness bias, 819
Responsive actions, 70
Responsive buying and selling, 660, 661, 667
Retracement rallies, 151
Retracements, 131, 134, 166, 363–364
Return line, 159–160, 518–519, 532–535
Reversal entries, 473–474
Reversal trendlines, 159, 716
Reversals, 56–57, 107, 131, 211, 218–230. See also
Chart patterns
behavioral elements of, 821–823
bottom, 57, 149–150
box, 593–595
independent of price direction, 280–281
low volume, 181
market tops and bottoms, 821–822
multiple bar, 214–216
preconditions for, 499–502
price and volume action characteristics, 217–218
single and double bar, 212–213
triple bar, 213–214, 215
wave degrees and, 278–280
Reverse divergence, 282, 291–322. See also Standard
and reverse divergence
Reward sizing, 883, 890, 914
Reward to risk ratio, 894–895
Rhea, Robert, 45–46
Right translation, 724
Rising channel, 531–535
Rising three method, 547, 575–576
Rising wedge, 527–528, 928
Risk capacity. See also Behavioral profile
aggressive versus conservative market participation,
827–831
client objectives, 826
and leverage, 831–832
WCS (worst-case scenario) principle, 831
Risk conservation in trading, 886–887
Risk of ruin (ROR), 891–892
Risk profile, 843
behavioral profiles for entries and exits, 827–831
reconciling with appropriate entry filter, 842
Risk sizing, 833, 903–907
Risk types, in trading, 886
Risk/return ratios, 901–903
ROC (rate of change) oscillator, 256
Rollover volatility, 89–92
Rounding tops and bottoms, 500, 528–531
RSI. See Relative Strength Index; Relative strength
indicator
Runaway gaps, 166Sakata’s Five Methods, 119–120
Scale invariance, 237
Schumpeter model, 719
Seasonals, 688–689, 719–720
Secondary reactions, 51–53
Secondary trends, 51–53
Sector rotation, 5, 826
Selective perception, 24–25
Self-fulfilling prophecy, 15–16, 40
Sell limit order, 147
Sell signals, 454–457
Selling climax, 102, 138, 182–185, 219, 231,
321–322, 342, 349, 532, 782, 822
Selling on the fact, 31