A comprehensive guide to technical analysis for both the novice and the professional Technical analysis is a vital tool for any trader, asset manager, or investor who wants to earn top returns. Successful Stock Signals for Traders and Portfolio Managers lets you combine technical analysis and fundamental analysis using existing technical signals to improve your investing performance. Author Tom Lloyd Sr. explains all the technical indicators you need to know, including moving averages, relative strength, support and resistance, sell and buy signals, candlesticks, point and figure charts, Fibonacci levels, Bollinger Bands, and both classic and new indicators. Merging these technical indicators with fundamental analysis will keep you in a portfolio of outperforming stocks, sharpen your fundamental buy discipline, and put your sell discipline on autopilot. Includes case studies applying technical analysis to current trending and hotly debated stocks like Facebook, LinkedIn, and Netflix Offers thorough and straightforward guidance on technical analysis for both professional and individual investors Covers the vital indicators in the public domain that investors need to know Whether you're an individual investor who wants to beat the indexes, a trader looking for high-risk, high-return positions, or a portfolio manager who wants to take a fundamental approach, this an ideal guide to technical analysis and indicators.
Preface xvii Acknowledgments xxi CHAPTER 1 Using Moving Averages and Relative Strength Performance to Beat the Index 1 Relative Strength Index, Money Flow Index, Keltner Channels, and Standard Deviation, with Apple Exhibits Know the Playing Field 1 Apple Computer's 200-Day Moving Average 3 20-, 50-, and 200-Day Moving Averages 4 Relative Strength versus the S&P 500 Index 6 Keltner Channels 8 Mean Reversion 8 Breakout Signal 9 Apple's Top at $644 9 Relative Strength Index (RSI) 10 Money Flow Index (MFI) 10 Standard Deviation (StdDev) 11 Relative Strength Performance, AAPL: $SPX 11 Supply and Demand 12 Summary 13 CHAPTER 2 On-Balance Volume, Accumulation/Distribution, Chaikin Money Flow, Pivot Point, Resistance and Support, and Point & Figure Chart, with Apple and Google Exhibits 15 Price and Volume 16 Chaikin Money Flow (CMF) 18 Moving Average Convergence/Divergence (MACD) 18 Value-Added Signals 19 Using Moving Averages 19 Pivot Point, Support and Resistance Points 20 Reverse Head-and-Shoulders Bottom 20 Apple Earnings Report 21 Case Study Questions on Apple 22 Planning for Apple's Earnings Report 22 You Must Now Make a Decision on Apple before Earnings 25 Answers to the Case Study Questions 25 Summary of the Apple Case Study 30 Google Case Study 30 Summary of the Google Case Study 38 CHAPTER 3 Bottoms and Tops, Buying and Selling Cycles, and Percentage Price Oscillator (PPO), with IBM and Hewlett-Packard Exhibits 39 Inverted Head-and-Shoulders Bottom 39 Double Top and "V" Bottom 41 Resistance 41 Cycles 42 Writing Puts and Calls 42 The "Cloud Stocks" for the Future 43 Long-Term Investing 43 Buy-and-Hold Strategy Is Problematic 44 Hewlett-Packard Case Study 46 Case Study Answer 47 Percentage Price Oscillator (PPO) 49 My Answer to the Case Study 51 Summary 51 CHAPTER 4 Sell Signals 53 Double Top, Failed Momentum, 10- and 20-Day Trends, Broken Support, Aroon Oscillator, and Directional Movement with ADX, with Herbalife Exhibits Technical Signals before a Blowup 53 Technical Signals after a Blowup 54 Double-Top Warning 56 The 10- and 20-Day Moving Average Signals 58 Aroon Oscillator and Directional Movement 59 Comments after the Herbalife Blowup 60 Herbalife Case Study Challenge 62 Answers to the Case Study Questions 64 The Daily Chart Looks More Bearish 65 Summary 67 CHAPTER 5 Supply and Demand, Candlestick Signals, and Point & Figure Chart, with Facebook Exhibits 69 Candlestick Sell Signal for Facebook 69 Failed Facebook versus Lucky LinkedIn 70 Portfolio Managers Prefer Fundamental Analysis 71 The Facebook IPO Game 72 Facebook Selloff 73 Facebook Dives Because of Supply 74 Traders Look for Inefficient Markets 75 Facebook Secrets Took Price Down 76 Facebook: The Rush to Sell on the First Day 77 Facebook Price in Search of a Bottom 78 Why Is Price Going Down? 79 Seeing Demand/Supply on the Chart 80 Waiting for Buy Signals 81 Picture of a "Busted IPO" 82 Point & Figure Chart Shows Continued Selling 83 On-Balance Volume 86 Accumulation/Distribution 86 Summary Picture of Supply and Demand 88 Facebook's First Earnings Report 88 CMF Signal 89 MFI and MACD Signals 90 Gravestone Doji Candlestick Signal 90 Pivot Point Support/Resistance Levels 91 Day--Trading Signals 91 Tremendous Supply Overhang 93 Summary 93 CHAPTER 6 Breakout Signals 95 Ascending Triangle, Bullish Rectangle, Double Bottom, and Falling Wedge, with Microsoft, Lululemon, and Home Depot Exhibits Double Bottom and Bullish Rectangle Breakout 95 What Is Wrong with Microsoft? 96 What Caused Microsoft to Break Out? 98 Falling Wedge Signals Double Bottom 100 Candlestick Hammer a Bullish Reversal Signal 100 Case Study: Home Depot Ascending Triangle 101 Summary 104 CHAPTER 7 Relative Strength Index, Stochastic, and MACD, with Lululemon Exhibits 105 Case Study: Lululemon before Earnings Are Reported 108 What Are You Ready to Do? 110 Answer to the Case Study 111 Now Are You Ready t