Welcome to 21st-century technical analysis! In PredictingAny Market, we are going to shatter myths, gore sacred cows, and build a better mousetrap.
For the past several hundred years, technicians have relied heavily on price and volume studies as the most important factors on a price charr. Don't get me wrong, these are very important. However, they do not give us a complete picture. Time studies are the least understood, yet they are a critically important element in technical analysis. Although traders comprehend price targets very well, most people have very litde idea as to what really causes trend changes. Do you ever wonder why a chart hits a certain price target and lingers for days until finally one day it drops?
Why did it drop on this day as opposed to that day? This area has always been one of the biggest problems for traders. The mission of this book is to close that gap. In the process, we will also open the door ofyour mind so you can have a greater understanding ofwhy price action behaves the way it does. It is a wonderful world of possibilities.
TABLE OF CONTENTS
Foreword • Xl
Acknowledgements .. XVII
Introduction •
XXI
1 IClosing the Gap 1
Impulse Waves 3
Corrective Waves 6
Triangles 9
Diagonal Triangles 11
Sentiment 12
My Experience with Elliott 15
2 IA New Look at the Language ofElliott Waves 17
Introduction to Time Relationships 20
Examining Corrections 23
In-Depth Look at Triangles 30
The Overlap Rule 33
3 IRotation in the Markets 41
Bear Rotations 44
The Entire Cycle from Bull to Bear Rotation 48
Advanced Set-ups 51
Sideways Markets 62
4 I Candlesticks and the Time Element 67
Support and Resistance 69
Polarity Lines and Zones 79
Putting It All Together: Time Resistance 82
5 IDivergences 89
MACD and Divergences 90
Intraday Case Studies 97
6 IVolume Studies, Moving Averages,
and the Time Element 115
Moving Averages and Time Clusters 116
Adding Volume to the Mix 120
Tracking Bull to Bear 122
Timing Cup and Handle Patterns 125
7 I Hitting MovingTargets-Fibonacci
Price Projections 137
Creating Projections 139
Introductory Case Studies 140
Advanced Case Studies 157
8 1 Advanced Projection Techniques 163
Going the Extra Mile 164
Extensions Based on Corrections 166
Variations on Gartley for Corrective Wave Patterns 168
Adding the Time Element 174
Extensions offTriangle Breakouts 182
Larger Degree Projections 185
Advanced Calculations 190
91 Timing the ForexMarket 195
Examining the Charts 197
10 I Mental Toughness 213
Taking out the Garbage 214
The Zone 221
Developing Mental Toughness 223
Becoming a Nonconformist 229
Living in the Present 231
Exploring Different Methodologies 235
11 I Practice Makes Profits 241
Practice Patience 242
High-Probability Set-ups with MACD Divergence 245
Calculating High ProbabilityTargets 253
Buying Dips, Selling Rallies 267
Buying off Corrections 273
12 I Conclusion 275
Bibliography 279
Glossary 283
Index 295
About the Author 313
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