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    Copyright
    George Lindsay and the Art of Technical Analysis: Trading Systems of a Market Master
    Mastering Market Timing: Using the Works of L.M. Lowry and R.D. Wyckoff to Identify Key Market Turning Points
    Trade the Trader: Know Your Competition and Find Your Edge for Profitable Trading
    Technical Analysis: The Complete Resource for Financial Market Technicians, Second Edition
    Pt.  I. Introduction
    Ch. 1. Introduction to Technical Analysis
    Ch. 2. The Basic Principle of Technical Analysis—The Trend
    Ch. 3. History of Technical Analysis
    Ch. 4. The Technical Analysis Controversy
    Pt.  II. Markets and Market Indicators
    Ch. 5. An Overview of Markets
    Ch. 6. Dow Theory
    Ch. 7. Sentiment
    Ch. 8. Measuring Market Strength
    Ch. 9. Temporal Patterns and Cycles
    Ch. 10. Flow of Funds
    Pt.  III. Trend Analysis
    Ch. 11. History and Construction of Charts
    Ch. 12. Trends—The Basics
    Trend—The Key to Profits
    Trend Terminology
    Basis of Trend Analysis—Dow Theory
    How Does Investor Psychology Impact Trends?
    How Is the Trend Determined?
    Determining a Trading Range
    Directional Trends (Up and Down)
    Other Types of Trend Lines
    Conclusion
    Review Questions
    Ch. 13. Breakouts, Stops, and Retracements
    Ch. 14. Moving Averages
    Pt.  IV. Chart Pattern Analysis
    Ch. 15. Bar Chart Patterns
    Ch. 16. Point-and-Figure Chart Patterns
    Ch. 17. Short-Term Patterns
    Pt.  V. Trend Confirmation
    Ch. 18. Confirmation
    Pt.  VI. Other Technical Methods and Rules
    Ch. 19. Cycles
    Ch. 20. Elliott, Fibonacci, and Gann
    Pt.  VII. Selection
    Ch. 21. Selection of Markets and Issues: Trading and Investing
    Pt.  VIII. System Testing and Management
    Ch. 22. System Design and Testing
    Ch. 23. Money and Risk Management
    Pt.  IX. Appendices
    Appx. A. Basic Statistics
    Appx. B. Types of Orders and Other Trader Terminology
    Bibliography
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    Review Questions

    1.Explain what the term trading range means. Why is it hard for a trader to make money when the market is in a trading range?
    2.What does the term support mean? How is support generally drawn on a chart?
    3.What does the term resistance mean? How is resistance generally drawn on a chart?
    4.Explain the psychology behind support and resistance levels.
    5.Jonathon is watching the stock of his favorite company trade in a congestion area. He is watching closely for a breakout to jump into the market. He says he does not want to miss the breakout, but he is cautious not to assume a breakout prematurely.

    1. Why do you think Jonathon is sitting on the sidelines while the stock is trading in the congestion area?

    2. How might Jonathon recognize a breakout?

    3. Explain the trade-off Jonathon is facing about being cautious regarding prematurely assuming a breakout, but at the same time being careful not to miss the breakout.

    6.Below is a daily bar chart for MSFT for April 28, 1999–June 30, 1999. Much of this chart represents a trading range area.

    1. Make a photocopy of this chart and mark the peaks and troughs on the chart.

    2. Which of the peaks and troughs that you marked fulfill the two-bar reversal point criterion?

    3. Which of the peaks and troughs that you marked fulfill the Gann two-day swing criterion?

    4. Draw support and resistance lines (or zones) on the graph.

    5. When does a breakout from the trading range occur?

    7.Using the data that you gathered and the graphs that you created in Chapter 11, “History and Construction of Charts,” for VLO (September 2007–September 2010), find the following items:

    1. Find a period of congestion on the graph. What were the levels of support and resistance during this trading range? In what direction did a breakout occur? What story does this breakout tell about the war between buyers and sellers?

    2. Locate a period when an accelerating uptrend occurs on the graph. When does a reversal occur?

    3. Locate a period when a decelerating uptrend occurs on the graph. When does a reversal occur?

    4. Find a period on the graph when the major trend is upward, but a retracement occurs.

     


      

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