Technical Analysis for Direct Access Trading

More than any other, the direct access trader depends on a keen knowledge of technical analysis--charts, oscillators, price, and volume--to determine optimal entry and exit points. Technical Analysis introduces basic charts, screens, and analysis, and covers popular analytic systems including price, volume, and volatility; support and resistance; and relative strength and trends. It also explains how to combine technical and fundamental analysis for taking advantage of the best aspects of each.

How to Use the Time-Tested Principles of Technical Analysis to Improve the Success of Your Direct Access Trading Program

To succeed, direct access traders must foresee near-term market movements with precision and­­using the Nasdaq level II screen­­act quickly to profit from those movements. In addition, savvy E-DAT traders are using technical analysis to identify which stocks are poised to move, determine the probable direction of the movements, and capture the subsequent profit opportunities.

Technical Analysis for Direct Access Trading explains how to use the charts, screens, and strategies of technical analysis to point out the profits hidden in regular market patterns. Analyses, examples, and "frequently asked questions" provide insights on topics including:

• Charts, oscillators, price and volume, momentum and market swings, and more

• Strategies to combine technical and fundamental analysis to fit your personal trading strategy
• Methods to incorporate charts and indicators into your trading screen

The Direct Access Traders Series shows you how to harness the power of today's financial technologies­­whether you make 2 trades per year or 2000. Other books in the series include:

• Understanding Direct Access Trading
• Direct Access Execution
• Mastering Direct Access Fundamentals
• Tools for the Direct Access Trader
• Trading Strategies for Direct Access Trading

"Understanding the financial markets is not out of the reach of anyone who is willing to spend some time and effort learning about where their money is going. All it takes to be a good investor is the willingness to take responsibility for one's decisions, and the patience to learn and understand the alternatives available."
­­From Chapter 1

Electronic direct access trading (E-DAT) is all about taking responsibility for one's own investment decisions. Technical Analysis for Direct Access Trading takes that idea one step further. It shows you how E-DAT professionals are using long-practiced methods of technical analysis­­from the trends and phases of Dow Theory to the recurring patterns of Elliot Wave Theory­­to analyze recent events, predict future movements in specific stocks, and markedly increase their ratios of winning trades.

Today's tumultuous market is ideal for combining the scientific precision of technical analysis with the technological advantages of direct access trading. Technical Analysis for the Direct Access Trader provides detailed explanations and examples of technical analysis in action to help you:

• Construct and read price/volume charts­­the "workhorse" charts of technical analysts
• Track the three types of trends­­primary, secondary, and minor­­that form the foundation of Dow Theory
• Determine whether a departure from a primary trend is a long-range reversal­­or a short-term whipsaw­­and act accordingly
• Generate profits in declining markets through short selling
• Use Bollinger Bands to adjust price forecasts based on current stock price volatility

Technical Analysis for Direct Access Trading introduces you to the basic technical charts, screens, and strategies that can indicate which stocks are poised to climb­­and when, and why. Written in plain English to be accessible to virtually every direct access trader, it explains how to fine-tune a direct access trading program that blends the best of technical and fundamental trading strategies into a comprehensive, marketwise trading program­­and profit more effectively from the turbulence of today's new-economy financial markets.