Technical Analysis (Bloomberg)

An essential guide to the most innovative technical trading tools and strategies available
In today s investment arena, there is a growing demand to diversify investment strategies through numerous styles of contemporary market analysis, as well as a continuous search for increasing alpha. Paul Ciana, Bloomberg L.P.

In today's financial markets, there is a growing demand to diversify an investment strategy and a continuous search for increasing alpha. Paul Ciana, Bloomberg LP's top liason to technical analysts worldwide, understands these challenges very well and that is why he has created New Frontiers in Technical Analysis. Ciana, along with in-depth contributions from some of the world's most accomplished market participants, developed this reliable guide that contains some of the newest tools and strategies for analyzing today's markets. All of the contributions to this book can be considered work that has not been seen before in this much detail. You'll quickly discover how to excel in today's financial markets as:

• Paul Ciana discusses previously undisclosed evidence of what the most popular chart types and technical indicators are, and then provides a succinct description of how to use the popular tools
• Julius de Kempenaer offers insight on formalizing a sector rotation strategy for world markets by tracking relative performance and momentum through a unique visualization tool called the Relative Rotation Graph.
• Phil Erlanger presents quantitative work on investing with seasonality and his four-step approach to trading using bias, setups, triggers, and monitoring
• Cynthia Kase explains her "KASE" trading strategies using a multitude of tools that address challenging subjects such as appropriate stop levels, adjusting for volatility, and the confluence of multiple time frames
• Andrew Kezeli discusses how TAS Professional LLC has incorporated the advantages of the unorthodox, yet extremely powerful, Market Profile into a suite of technical indicators that are applied to the more traditional bar chart
• Rick Knox, through the application of ATM studies, introduces the methods he uses to identify and track Elliott Wave structures, when to enter and exit a trade while considering price and time risk management, and the importance of higher time frame analysis to your investment strategy.

Whether you're a novice or a seasoned veteran, there is much to be gained by reading this book. The information found here will not only sharpen your investment strategies, but will also improve the way you view the financial market.

Preface xi
Acknowledgments xv
Chapter 1 Evidence of the Most Popular Technical Indicators 1
Paul Ciana, CMT
Defining Technical Analysis 2
Defining Chart Types 5
Evidence of Chart Type Popularity 10
Evidence of Technical Indicator Popularity 14
Applying the Most Popular Technical Indicators 18
Conclusion 45
Chapter 2 Everything is Relative Strength is Everything 49
Julius de Kempenaer
"This Time It's Different" 50
What is Comparative Relative Strength? 51
The JdK RS-Ratio and JdK RS-Momentum 65
Relative Rotation Graphs 75
Conclusion 83
Chapter 3 Applying Seasonality and Erlanger Studies 85
Philip B. Erlanger, CMT
Testing for a Valid Seasonal Cycle 86
Applying Cycles as a Strategy 94
Monitoring Seasonal Data 101
Erlanger Studies: The Art of the Squeeze Play 108
Chapter 4 Kase StatWareTM and Studies: Adding Precision to Trading and Investing 155
Cynthia A. Kase, CMT, MFTA
Introduction to KaseSwing 157
Kase DevStops 169
Kase Momentum Divergence Algorithm 177
Kase PeakOscillator and KaseCD 188
Why Use KasePO and KaseCD? 189
Kase Permission Stochastic and Screen 199
Entering Trades and the Kase Easy Entry System 201
About the Kase Easy Entry System 206
Trading with Kase StatWare 209
Kase Bar Chart (Equal TrueRange Bar Chart) 211
Summary 215
Chapter 5 Rules-Based Trading and Market Analysis Using Simplified Market Profile 217
Andrew Kezeli
Technical Analysis is Simple in Theory-Difficult in Practice 218
Rules-Based Trading: Automated Strategy Trading versus Discretionary Trading 221
Balance versus Imbalance: Distinguishing the Two Phases of Market Activity 222
There are Only Three Market Segments: Nontrending, Uptrending, and Downtrending 224
Four Market Participants-and Then a Fifth . . . 228
Market Profile 231
Market Movement: The Four Steps of Market Activity 234
Market Structure 236
The Relative Speed of the Market's Building-Block Components 239
Vertical Nondevelopment ("Minus Development") 240
Simplifying Market Profile 245
TAS PRO VAP Map 247
Rules-Based Trading and Analysis with TAS PRO Navigator 255
TAS PRO Indicator Application Examples 257
Conclusion 280
Chapter 6 Advanced Trading Methods 283
Rick Knox
From the CBOT to the Charts 283
Trading by Gut Feeling 287
Understanding the Background of an Opportunity 288
They Say Entry is Easy, but Not in My Book 295
Trade When the Odds are in Your Favor 299
Don't Fight the Trend 300
Trade Location is Key to Long-term Success 301
Adjusting to Volatility 302
Anticipating What Needs to Happen 303
Using Time as Part of Your Risk Management 304
Learning to Control Your Emotions 306
The Hardest Part of Any Strategy is the Exit 306
Putting It All Together: Two Examples 307
Picking Up the Right Tools 310
Recommended Reading 313
About the Authors 315
Index 319