This book integrates technical analysis in the capital markets: stock market theories, valuation approaches, portfolio theories, company analysis. In addition to deepening the overall inspection of technical analysis, the book will challenge the corporate norm and offer alternative theories, sometimes even contrary theories, and explore related areas in the context of increasing investment efficiency. Unlike other research in this area, this approach does not consider technical analysis as an ultimate and absolute truth and recognizes that by studying all aspects of an interdisciplinary problem, the chances of success increase substantially. The book will be of specific interest to academics, students and practitioners of financial markets.
Author(s): Florin Cornel Dumiter, Florin Marius Turcaș
Publisher: Palgrave Pivot
Year: 2023
Language: English
Pages: 177
City: Cham
Foreword
Preface
Acknowledgements
Translator’s Note
Contents
About the Authors
List of Figures
List of Tables
1 Fundamental Notions of Technical Analysis
1.1 Defining Technical Analysis
1.2 Wave Movement (Trends) Versus Random Walk: Dow Theory
1.3 Advantages and Disadvantages of Technical Analysis
1.4 Technical Analysis in Academia
1.5 Finis Coronat Opus
References
2 Fundamental Analysis versus Technical Analysis
2.1 Modern Portfolio Theory: Return-Risk
2.2 Securities Correlation
2.3 Market Multipliers
2.4 Discounted Cash Flow Forecasts
2.5 Rational Periods and Periods of Rush/panic
2.6 Important Events and Their Evolution
2.7 The Usage of News Sentiment Figures in Constructing Market Sentiment Indices
2.8 Finis Coronat Opus
References
3 Correlations Between Securities and Markets
3.1 Linkages Between Technical Analysis and Modern Portfolio Theory
3.2 Correlation—definition and Its Role in Portfolio Theories
3.3 Mathematical Correlation and Practical Correlation (Graphics)
3.4 Principles of Portfolio Construction
3.5 Finis Coronat Opus
References
4 Charts Used in Technical Analysis
4.1 Types of Charts
4.2 Electronic Interpretation of Data
4.3 Automatic Trading Signals
4.4 Graphical Depiction of Securities and Their Evolution in the Market Using Important Points on the Chart
4.5 Finis Coronat Opus
Note
References
5 Important Graphic Elements Used in Technical Analysis
5.1 Trend Lines
5.1.1 Trend Lines Go Through Lows to Uptrends and Highs to Downward Trends
5.2 Resistance, Support. Interchangeable Roles
5.3 Volume
5.4 Trend Continuation Patterns
5.5 Reverse Patterns
5.6 Fibonacci Retracements and Extensions
5.7 Elliott Wave
5.8 Point and Figure Charts
References
6 Indicators and Oscillators Used in Technical Analysis
6.1 Moving Averages
6.2 Moving Average Convergence Divergence
6.3 Relative Strength Index
6.4 Bollinger Bands
6.5 Finis Coronat Opus
References
7 Stock Exchange Predictions
7.1 What Are Predictions? The Probability Behind Them
7.2 Stock Forecasts Available on the Market
7.3 Why There Are No Bookmakers?
7.4 How Forecasts Can Be Used in Conjunction with Technical Analysis
7.5 Finis Coronat Opus
References
8 Stages of Technical Analysis
8.1 The Market in General, Macroeconomic Considerations
8.2 Monthly–Weekly–Daily Charts
8.3 Trends–Support/Resistance–Channels. Volume
8.4 Patterns
8.5 Moving Averages–Indicators–Oscillators–Opposing Views
8.6 Comparisons–Correlation–Probabilities
8.7 Finis Coronat Opus
References
Index
