The Handbook of Technical Analysis + Test Bank. Lim Mark Andrew

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      Mark Andrew Lim

      The Handbook of Technical Analysis

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      The Handbook of Technical Analysis

       The Practitioner's Comprehensive Guide to Technical Analysis

      MARK ANDREW LIM

      Cover Design: Wiley

      Cover Image: ©Krystian Nawrocki / iStockphoto.com

      Copyright © 2016 by John Wiley & Sons Singapore Pte. Ltd.

      Published by John Wiley & Sons Singapore Pte. Ltd.

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      All rights reserved.

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      ISBN 978-1-118-49891-0 (Paperback)

      ISBN 978-1-118-49893-4 (ePDF)

      ISBN 978-1-118-49892-7 (ePub)

I dedicate this work to my family, for their unconditional support and encouragement through thick and thin

      Foreword

      I sincerely believe that this handbook is a feast for serious technical traders as well as for hardcore technical analysis practitioners. This handbook is especially meant for beginner professionals looking to improve their trading performance, and in the process, trying to avoid some of the more painful collisions with complex charting theories. I wish I had this book years ago. That said, I enjoy reading it today, finding Mark’s pearls of wisdom an aid to improve my technical trading.

      Mark is one of Malaysia’s distinguished technical analysis gurus whose dazzling mind produces more fresh ideas in a book than most other experts in an entire lifetime. Since knowing him back in 2002, he has been an influential mentor and a respectable trader, becoming well known from 2002 to 2007 as being one of Malaysia’s finest traders. Most of his trading techniques and theories in the handbook are now included in most of my trading programs.

      There are a lot of books on technical analysis. Most of them concentrate on very specific items, exploring a particular concept in great depth. A long and detailed handbook covering a broad range of topics with practical value such as this is much more difficult to find. Mark gives his readers diverse market indicators to identify positive investment climates, backing them up with in-depth theoretical explanations and real-world chart examples. He exposes powerful technical signals and uncovers some of the most obscure concepts in technical analysis, reducing them to a set of very clear and lucid rules.

      I believe that this handbook provides an excellent starting point, as well as a comprehensive reference text for technically orientated practitioners. It outlines the primary principles of technical analysis and provides a solid foundation for moving forward into more advanced and cutting-edge concepts. For the experienced trader, this book will also serve as a reliable refresher, reinforcing good technical trading practices that are both enduring and effective. It explains technical trading in a clear and easily understandable format, examining entire concepts, from start to finish. All techniques discussed are succinctly illustrated with clear chart examples.

      Mark’s handbook points the way for readers interested in the master chartist approach. He distils his vast market expertise into a simple set of technical guidelines and rules. As an example, Mark explains why he believes the markets respond in specific behavioral manner to phenomena such as volume divergence and breakaway gaps. His chapter on volume and volatility also makes it clear why market tops react in a certain manner before the ‘storm’ and why market bottoms tend to ‘storm’ before the rebound. These simple but yet profound concepts will change the way many readers approach trading and investing in the markets.

      I congratulate Mark on his hard work in producing this profound handbook. It is a big achievement for the technical analysis community and we are proud of his contribution. Finally, I believe that the only thing readers need to do after reading this handbook is to make a commitment to apply his work, with the appropriate mind-set to become successful traders and investors.

      I wish all readers and technical analysis fans lots of success, happy learning, and trading with technical analysis!

– Dr. Nazri Khan,MSTA, CFTe, President, Malaysian Association of Technical Analyst (MATA); Vice President, Affin Investment Bank Malaysia

      Preface

      The Handbook of Technical Analysis provides a unique and comprehensive reference for serious traders, analysts, and practitioners of technical analysis. This book explains the definitions, concepts, applications, integration, and execution of many technical-based trading tools and approaches, with detailed coverage of various technical and advanced money management issues. It also exposes the many strengths and weaknesses of various popular technical approaches and offers effective solutions wherever possible. Innovative techniques for pinpointing and handling potential market breakouts and reversals are also discussed throughout the handbook. A dedicated chapter on advanced money management helps complete the trader’s education.

      This handbook will prove indispensable to foreign exchange, bond, stock, commodity futures, CFD, and option traders, especially if they are looking for a fast and comprehensive route to mastering some of the most powerful tools and techniques available for analyzing price and market behavior. It is replete with hundreds of illustrations, tables, and charts, giving the trader and investor an instant visual understanding of the underlying principles and concepts discussed. Markets analyzed include bonds, commodity, equities, and foreign exchange.

      With extensive content and coverage, The Handbook of Technical Analysis also provides the