"In trading, timing is everything, and now is the time to read this excellent and easy–to–follow book on technical trading systems by Perry Kaufman. He shares his trading tips, insights, and sound advice. He takes you from his rules on price to the recognition of trends and the importance of breakouts. Enjoy this book and find out why trading systems work and which ones work the best."
Ralph J. Acampora, CMT
Director of Technical Research, Prudential Securities, Inc.
"Investors and traders who have been battered by the markets in recent years may find themselves saying, ‘There must be a better way.’ There is: systematic trading. In this timely book Perry Kaufman provides an excellent introduction to the world of systematic trading, where rulesnot emotionsrule."
John Bollinger, CFA, CMT
Founder, [external URL]
"This book is a terrific basic text for those who are looking for a clear and concise introduction to technical analysis. Of great value are the personal insights of the author, a noted authority on the development of trading systems."
David Krell, President and CEO
International Securities Exchange, Inc.
1. Timing Is Everything 1
2. Charting the Trend 18
3. Breakout Trends 36
4. Calculating the Trend 51
5. The Trading Game 78
6. Channels and Bands 91
7. Event–Driven Trends 107
8. Controlling the Risk of a Trade 118
9. One–Day Chart Patterns and Reversals 130
10. Continuation Patterns 145
11. Top and Bottom Formations 153
12. Retracements, Reversals, Fibonacci Numbers, and Gann 167
13. Volume, Breadth, and Open Interest 180
14. Momentum and MACD 199
15. Overbought/Oversold Indicators and Double Smoothing 213
16. Managing Your Entry and Exit 235
17. Volatility and Portfolio Management 243
18. Dow Theory 262
Review Questions 275
Answers to Chapter Questions 287
Review Answers 307