Page 12 - THE MARKET WHISPERER
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THE MARKET WHISPERER XI
Chapter 5 PRINCIPLES OF TECHNICAL ANALYSIS 121
The Basis 123
The Trend 124
Defining the Trend 126
Support and Resistance 130
When Support Turns into Resistance, and Vice Versa 131
High and Low Points 134
Analyzing Japanese Candles 137
Narrow Range Candle 137
Wide Range Candle 138
Candle Tail 139
Reversal Patterns 142
Common Reversal Patterns 143
When to Hit the Button 147
Breakout and Breakdown Patterns 149
Bull Flag 149
Bear Flag 151
Cup and Handle Formation 152
Inverse Cup and Handle 154
Head and Shoulders 156
Inverse Head and Shoulders 157
Pennant 158
Chapter 6 INDICES, SECTORS AND CRYSTAL BALLS 161
How to Predict Movement 163
165
The Most Important Market Index: S&P 500 170
SPY – The S&P 500 ETF 170
ES – The S&P 500 Futures 171
Should You Trade in Futures? 172
What is the ES Symbol? 173
Summary: SPX, SPY, ES 174
175
NASDAQ 100: The Second Most Important Index 175
NASDAQ 100 Symbol 176
NASDAQ 100 ETF: QQQ 177
NASDAQ 100 Futures Contract: NQ 178
178
The Forgotten Index: Dow Jones, DJI 179
The Dow Jones ETF: DIA 182
The Dow Jones Futures Contract: YM
Rebalance: How to Profit from Index Updates
Sectors and Industries
Chapter 7 INDICATORS: THE TRADER’S COMPASS 187
Volume of Trade 191
Volume Precedes Price 192
Average Volume 192
