Preface ix<br>Part I: Trend-Determining Techniques<br>1. The Definition and Interaction of Trends 3<br>2. Financial Markets and the Business Cycle 17<br>3. Dow Theory 29<br>4. Typical Parameters for Intermediate Trends 41<br>5. How to Identify Support and Resistance Zones 55<br>6. Trendlines 70<br>7. Basic Characteristics of Volume 97<br>8. Classic Price Patterns 115<br>9. Smaller Price Patterns and Gaps 166<br>10. One- and Two-Bar Price Patterns 186<br>11. Moving Averages 209<br>12. Envelopes and Bollinger Bands 233<br>13. Momentum I: Basic Principles 246<br>14. Momentum II: Individual Indicators 279<br>15. Momentum III: Individual Indicators 311<br>16. Candlestick Charting 340<br>17. Point and Figure Charting 373<br>18. Miscellaneous Techniques for Determining Trends 383<br>19. The Concept of Relative Strength 401<br>20. Putting the Indicators Together: The DJ Transports 1990–2001 423<br>Part II: Market Structure<br>21. Price: The Major Averages 431<br>22. Price: Sector Rotation 455<br>23. Time: Analyzing Secular Trends for Stocks,Bonds, and Commodities 471<br>24. Time: Cycles and Seasonal Patterns 499<br>25. Practical Identification of Cycles 525<br>26. Volume II: Volume Indicators 531<br>27. Market Breadth 560<br>Part III: Other Aspects of Market Analysis<br>28. Indicators and Relationships That Measure Confidence 593<br>29. The Importance of Sentiment 610<br>30. Integrating Contrary Opinion and Technical Analysis 635<br>31. Why Interest Rates Affect the Stock Market 653<br>32. Using Technical Analysis to Select Individual Stocks 673<br>33. Technical Analysis of International Stock Markets 694<br>34. Automated Trading Systems 713<br>35. Checkpoints for Identifying Primary StockMarket Peaks and Troughs 739<br>Epilogue 753<br>Appendix: The Elliott Wave 755<br>Glossary 761<br>Bibliography 767<br>Index 773