High–Probability Trade Setups: A Chartist’s Guide to Real–Time Trading

Praise for HIGH–PROBABILITY TRADE SETUPS
"Technical analysis, in Tim Knight′s way of thinking, is not just focusing on a chart and drawing lines. Rather, it′s providing special market insight from years of trading. Tim′s latest book makes me feel like I missed something in my own development as a trader and I want to learn more."
—Tom Sosnoff, founder of thinkorswim.com and current CEO of tastytrade.com
"Technical price patterns give traders an edge in any market, but it is a technique that is full of nuances that can be challenging for new traders. High–Probability Trade Setups explains the patterns you need to understand, and fully explains the details of why they work the way they do. Tim Knight is uniquely qualified to provide the detail that is always just skimmed over by other authors. He is one of the pioneers of computerized and Internet charting and has been studying technical patterns as a market professional since before most of today′s traders opened their first brokerage account. If you want to fully understand the process of using technical patterns to find and execute successful trades, then I couldn′t recommend this book more enthusiastically."
—John Jagerson, founder of LearningMarkets.com and author of All About Investing in Gold
"Tim′s latest book shares his lifetime of knowledge with traders who appreciate and utilize charting and technical analysis as a critical component of developing and executing their trading strategies. With High–Probability Trade Setups, Tim adds another volume to what has become a living library of technical analysis for everyone from the beginning investor seeking an education as to the meaning of technical analysis to this latest edition which is for the more active—but still learning—trader who wants to understand the more sophisticated charting patterns and how to use them profitably. Tim lives, eats, and breathes technical a nalysis and charting, and I recommend this book to all investors."
—Lee Barba, former CEO, Investools

Spis treści:
About the Author xiii
PART I An Overview 1
CHAPTER 1 A Primer on Chart Setups 3
The Bulls versus the Bears 4
Why Is a Prediction Valuable? 4
A Word on Shorting 6
Support and Resistance 7
What Happens When Prices Punch Through? 8
History Repeats Itself 11
When Patterns Work Together 13
How to Use This Book 14
CHAPTER 2 My Personal Trading Journey 15
Earliest Interest in the Markets 15
Beginning with the Crash 16
Technical Tools 17
Prophet’s Beginning 18
The Internet Makes Its Appearance 18
Enter Alex and JavaCharts 19
Project Kandinsky 21
The Slope of Hope 22
Lessons Learned 22
ProphetCharts Lives 23
The Three Steps 24
PART II The Patterns 31
CHAPTER 3 Ascending Triangles 33
Definition of the Pattern 33
Psychology behind the Pattern 35
Examples 35
Summary 43
CHAPTER 4 Ascending Wedges 45
Definition of the Pattern 45
Psychology behind the Pattern 47
Examples 47
Summary 53
CHAPTER 5 Channels 55
Definition of the Pattern 55
Psychology behind the Pattern 57
Examples 57
Summary 68
CHAPTER 6 Cup with Handle 69
Definition of the Pattern 69
Psychology behind the Pattern 70
Examples 72
Longer–Term Examples 75
Summary 79
CHAPTER 7 Descending Triangles 81
Definition of the Pattern 81
Psychology behind the Pattern 83
Examples 83
Summary 89
CHAPTER 8 Descending Wedges 91
Definition of the Pattern 91
Psychology behind the Pattern 92
Examples 93
Summary 102
CHAPTER 9 Diamonds 103
Definition of the Pattern 103
Psychology behind the Pattern 105
Examples 105
Summary 110
CHAPTER 10 Fibonacci Fans 111
Definition of the Pattern 111
Psychology behind the Pattern 113
Examples 114
Summary 126
CHAPTER 11 Fibonacci Retracements 129< br>Definition of the Pattern 130
Examples 132
Summary 139
CHAPTER 12 Flags 141
Definition of the Pattern 141
Psychology behind the Pattern 142
Examples 143
Summary 153
CHAPTER 13 Gaps 155
Definition of the Pattern 155
Psychology behind the Pattern 157
Examples 158
Summary 174
CHAPTER 14 Head and Shoulders 175
Definition of the Pattern 175
Psychology behind the Pattern 176
The Importance of the Neckline 177
Examples 178
Summary 197
CHAPTER 15 Inverted Head and Shoulders 199
Definition of the Pattern 199
Psychology behind the Pattern 201
The Importance of the Neckline 202
Examples 202
Summary 215
CHAPTER 16 Multiple Bottoms 217
Definition of the Pattern 217
Psychology behind the Pattern 219
Examples 220
Summary 230
CHAPTER 17 Multiple Tops 231
Definition of the Pattern 231
Psychology behind the Pattern 233
Examples 233
Summary 241
CHAPTER 18 Pennants 243
Definition of the Pattern 243
Psychology behind the Pattern 244
Examples 245
Summary 253
CHAPTER 19 Rounded Bottoms 255
Definition of the Pattern 255
Psychology behind the Pattern 256
Examples 257
Summary 265
CHAPTER 20 Rounded Tops 267
Definition of the Pattern 267
Psychology behind the Pattern 269
Examples 270
Summary 278
CHAPTER 21 Support Failure 279
Definition of the Pattern 279
Psychology behind the Pattern 280
Examples 281
Summary 299
CHAPTER 22 Automatic Patterns 301
Patterns in ProphetCharts 302
Working with the Results 307
Pattern Failures 314
Putting the Patterns to Work 315
PART III Trading and You 317
CHAPTER 23 Setting Stops 319
General Guidelines 319
Below Support 320
Above Resistance 320
Above Trendline 321
Below Trendline 321
Most Recent Low 322
Most Recent High 322
Special Cases 323
CHAPTER 24 On Being a Bear 325
The Philosophy of Shorting 325
Practical Guide to Short Selling 326< br>Exchange–Traded Funds 328
Puts for Leveraged Profits 330
The Philosophy of Shorting 332
CHAPTER 25 A Guide to Real–Life Trading 337
Trading Rules 337
How to Open a Position 338
How to Hold a Position 341
How to Close a Position 343
Time and Money 343
There Is No Holy Grail 344
Closing Thoughts 345
Index 347

Nota biograficzna:

Timothy Knight is the founder of Prophet Financial Systems (now owned by Ameritrade), which has been rated by Forbes and Barron′s as the number one online site for technical analysis. He also operates a highly successful trading blog, SlopeOfHope.com. Prior to starting Prophet.net, Knight was vice president of technology products for Montgomery Securities, where he helped develop PC–based trader workstations before the development of web trading. Knight has traded for more than twenty years, primarily using technical analysis and price charts. He is also the author of both editions of Chart Your Way to Profits (Wiley).

Okładka tylna:

Praise for HIGH–PROBABILITY TRADE SETUPS
"Technical analysis, in Tim Knight′s way of thinking, is not just focusing on a chart and drawing lines. Rather, it′s providing special market insight from years of trading. Tim′s latest book makes me feel like I missed something in my own development as a trader and I want to learn more."
—Tom Sosnoff, founder of thinkorswim.com and current CEO of tastytrade.com
"Technical price patterns give traders an edge in any market, but it is a technique that is full of nuances that can be challenging for new traders. High–Probability Trade Setups explains the patterns you need to understand, and fully explains the details of why they work the way they do. Tim Knight is uniquely qualified to provide the detail that is always just skimmed over by other authors. He is one of the pioneers of computerized and Internet charting and has bee n studying technical patterns as a market professional since before most of today′s traders opened their first brokerage account. If you want to fully understand the process of using technical patterns to find and execute successful trades, then I couldn′t recommend this book more enthusiastically."
—John Jagerson, founder of LearningMarkets.com and author of All About Investing in Gold
"Tim′s latest book shares his lifetime of knowledge with traders who appreciate and utilize charting and technical analysis as a critical component of developing and executing their trading strategies. With High–Probability Trade Setups, Tim adds another volume to what has become a living library of technical analysis for everyone from the beginning investor seeking an education as to the meaning of technical analysis to this latest edition which is for the more active—but still learning—trader who wants to understand the more sophisticated charting patterns and how to use them profitably. Tim lives, eats, and breathes technical analysis and charting, and I recommend this book to all investors."
—Lee Barba, former CEO, Investools