The Art and Science of Technical Analysis: Market Structure, Price Action, and Trading Strategies -- Contents -- Preface -- Acknowledgments -- PART I The Foundation of Technical Analysis -- CHAPTER 1 The Trader's Edge -- DEFINING A TRADING EDGE -- Expected Value -- Where Does the Edge Come From? -- The Holy Grail -- FINDING AND DEVELOPING YOUR EDGE -- Why Small Traders Can Make Money -- GENERAL PRINCIPLES OF CHART READING -- Choosing Time Frames -- Bars, Candles, or Other Choices -- INDICATORS -- THE TWO FORCES: TOWARD A NEW UNDERSTANDING OF MARKET ACTION -- PRICE ACTION AND MARKET STRUCTURE ON CHARTS -- Pivot Points -- Length of Swing -- Reading Inside the Bars -- CHARTING BY HAND -- CHAPTER 2 The Market Cycle and the Four Trades -- WYCKOFF'S MARKET CYCLE -- Accumulation-Building a Base -- Markup: The Classic Uptrend -- Distribution-The End? -- Markdown: The Bear Market -- The Cycle in Action -- THE FOUR TRADES -- Trend Continuation -- Trend Termination -- Support or Resistance Holding -- Support or Resistance Breaking or Failing -- SUMMARY -- PART II Market Structure -- CHAPTER 3 On Trends -- THE FUNDAMENTAL PATTERN -- Fractal Markets -- TREND STRUCTURE -- Impulse and Momentum -- Climaxes -- Pullbacks -- Measured Move Objective -- Three Pushes -- A DEEPER LOOK AT PULLBACKS: THE QUINTESSENTIAL TREND TRADING PATTERN -- Characteristics of Winning Pullbacks -- Common Characteristics of Failed Pullbacks -- TREND ANALYSIS -- Dow Theory Trend Patterns -- Indicators -- Understanding Trend Integrity -- Length of Swing Analysis -- Using Trend Lines to Define Rate of Trend -- Rate of Trend -- Character of Trend Legs -- SUMMARY -- CHAPTER 4 On Trading Ranges -- SUPPORT AND RESISTANCE -- Potential Support/Resistance -- Broken Support Becomes Resistance -- The Dark Secret of Support and Resistance -- Support and Resistance in Action.

TRADING RANGES AS FUNCTIONAL STRUCTURES -- Continuation Ranges -- Reversal Ranges -- Volatility Conditions in Trading Ranges -- SUMMARY -- CHAPTER 5 Interfaces between Trends and Ranges -- BREAKOUT TRADE: TRADING RANGE TO TREND -- Patterns Preceding Good Breakouts -- Characteristic Patterns at Good Breakouts -- Patterns Following Good Breakouts -- Patterns of Failed Breakouts -- TREND TO TRADING RANGE -- Trade Management Issues -- TREND TO OPPOSITE TREND (TREND REVERSAL) -- Parabolic Blow-Off into Climax -- Last Gasp -- Trend Change Without Warning -- Change of Character -- TREND TO SAME TREND (FAILURE OF TREND REVERSAL) -- SUMMARY -- PART III Trading Strategies -- CHAPTER 6 Practical Trading Templates -- FAILURE TEST -- PULLBACK, BUYING SUPPORT OR SHORTING RESISTANCE -- PULLBACK, ENTERING LOWER TIME FRAME BREAKOUT -- TRADING COMPLEX PULLBACKS -- THE ANTI -- BREAKOUTS, ENTERING IN THE PRECEDING BASE -- BREAKOUTS, ENTERING ON FIRST PULLBACK FOLLOWING -- FAILED BREAKOUTS -- SUMMARY -- CHAPTER 7 Tools for Confirmation -- THE MOVING AVERAGE-THE STILL CENTER -- Ideas for Using Moving Averages -- CHANNELS: EMOTIONAL EXTREMES -- Ideas for Using Channels -- INDICATORS: MACD -- Basic Interpretation of the MACD -- MULTIPLE TIME FRAME ANALYSIS -- Lower Time Frame Structures within Higher Time Frame Context -- Timing Entries from Lower Time Frames -- Summary of Multiple Time Frame Analysis -- Relative Strength -- CHAPTER 8 Trade Management -- PLACING THE INITIAL STOP -- Fixed-Percentage Stops -- Volatility-Based Stops -- Market Structure -- SETTING PRICE TARGETS -- Fixed Profits at Risk Multiples -- Market Structure Targets -- Trailing Stops -- ACTIVE MANAGEMENT -- Choices: Enter All at Once or Scale In? -- Taking Partial Profits -- Taking Partial Losses -- Adding to Existing Trades -- Time Stops -- Tightening Stops -- Widening Stops.

Managing Gaps Beyond Stops -- PORTFOLIO CONSIDERATIONS -- Correlated Positions -- Maximum Portfolio Risk -- PRACTICAL ISSUES -- Monitoring Tools -- Practical Tips on Execution -- CHAPTER 9 Risk Management -- RISK AND POSITION SIZING -- First, Know Your Risk -- %R and Position Sizing -- The Effect of Position Sizing -- THEORETICAL PERSPECTIVES ON RISK -- Thinking in Sample Sizes -- Uncertainty as Risk -- MISUNDERSTOOD RISK -- Generating Positive Expected Value -- The "Risk" of Risk/Reward -- PRACTICAL RISKS IN TRADING -- Trading Without an Edge -- Execution Risk -- Disaster Risk -- Markets Evolve. Do You? -- Event Risk/Tail Risk -- Correlation -- Liquidity Risk -- Regulatory Risk -- SUMMARY -- CHAPTER 10 Trade Examples -- TREND CONTINUATION -- Simple Pullback, Breakout Entry -- Simple Pullback, Breakout Entry -- Pullback, Lower Time Frame Climax Entry -- Pullback, High and Tight -- Pullback, Nested -- Complex Pullback -- Complex Pullback -- Pullback Failure at Previous Swing -- Pullback Failure at Previous Swing -- Pullback Failure: Strong Momentum Develops -- Pullback Failure: Goes Flat After Entry -- TREND TERMINATION -- Failure Test -- Failure Test, Second-Day Entry -- Failure Test, Other Variations -- FAILURE TEST FAILURES -- Failure Test Failure by Consolidation -- Failure Test Failure by Consolidation -- Failure Test Failure with Second Entry -- Failure Test, Other Failures -- TRADING PARABOLIC CLIMAXES -- Trading Parabolic Climaxes: Stand-Alone Entries -- Trading Parabolic Climaxes: Managing Existing Positions -- Climax Failures -- THE ANTI -- Anti 1 -- Anti 2 -- Anti 3 -- Anti Failures -- Conclusions -- TRADING AT SUPPORT AND RESISTANCE -- Breakouts: Early Entry in Base -- Breakouts: First Pullback Following -- Breakout Failures -- SUMMARY -- PART IV The Individual, Self-Directed Trader -- CHAPTER 11 The Trader's Mind.

PSYCHOLOGICAL CHALLENGES OF THE MARKETPLACE -- EVOLUTIONARY ADAPTATIONS -- Perceiving Patterns in Randomness -- Heuristics -- Shifting Blame -- Fight or Flight -- COGNITIVE BIASES -- Gambler's Fallacy -- Biases Concerning Losses -- Overconfidence Bias -- Confirmation Bias -- Anchoring Bias -- Recency Bias -- Hindsight Bias -- Illusion of Control -- THE RANDOM REINFORCEMENT PROBLEM -- EMOTIONS: THE ENEMY WITHIN -- Ego -- Hope and Fear -- INTUITION -- Developing Intuition -- Using Intuition -- Trusting Intuition -- Numbers to Leave Numbers -- FLOW -- How to Get There -- The Role of Attention and Focus -- PRACTICAL PSYCHOLOGY -- Develop an Approach That Fits Your Personality -- SUMMARY -- CHAPTER 12 Becoming a Trader -- THE PROCESS -- Requirements -- Commit to the Process -- RECORD KEEPING -- Journal -- Profit and Loss (P&L) Records -- STATISTICAL ANALYSIS OF TRADING RESULTS -- Quantifying Your Edge -- Standardizing for Risk -- Control Charts -- SUMMARY -- APPENDIX A Trading Primer -- THE SPREAD -- TWO TYPES OF ORDERS -- Spread Trading -- CHARTS -- Tick Charts -- Bars and Candles -- Time Charts and Other Options -- APPENDIX B A Deeper Look at Moving Averages and the MACD -- MOVING AVERAGES -- Comparing EMA and SMA Behavior -- THE MACD -- Basic Construction of the MACD -- A Deeper Look -- APPENDIX C Sample Trade Data -- Glossary -- Bibliography -- About the Author -- Index.