CMT Level I 2019: An Introduction to Technical Analysis

Wiley empowers learners, researchers, universities, and corporations to achieve their goals in an ever-changing world. For over 200 years, Wiley has been helping people and organizations develop the skills and knowledge they need to succeed. Wiley develops digital education, learning, assessment, and certification solutions to help universities, businesses, and individuals move between education and employment and achieve their ambitions. By partnering with learned societies, we support researchers to communicate discoveries that make a difference. Our online scientific, technical, medical, and scholarly journals, books, and other digital content build on a 200-year heritage of quality publishing.

Introduction ix The CMT Association ix The CMT Program x The Level I Textbook xii Section I Theory and History of Technical Analysis 1 Chapter 1 The Basic Principle of Technical Analysis-The Trend 3 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 2 Dow Theory 15 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 3 History and Construction of Charts 27 Charles D. Kirkpatrick II and Julie R. Dahlquist Section II Charts, Trends, and Patterns 45 Chapter 4 Trends-The Basics 47 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 5 Breakouts, Stops, and Retracements 75 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 6 Moving Averages 97 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 7 Bar Chart Patterns 125 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 8 Short-Term Patterns 158 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 9 Confirmation 200 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 10 Candlestick Charting Essentials 242 Steve Nison Chapter 11 Point-and-Figure Charting 252 Perry J. Kaufman Section III Advanced Concepts In Charting and Trend Analysis 279 Chapter 12 Introduction to the Wave Principle 281 Wayne Gorman, Jeffrey Kennedy, and Robert R. Prechter, Jr. Chapter 13 The Anatomy of E lliott Wave Trading 299 Wayne Gorman, Jeffrey Kennedy, and Robert R. Prechter, Jr. Chapter 14 Measuring Market Strength 314 Charles D. Kirkpatrick II and Julie R. Dahlquist Chapter 15 Foundations of Cycle Theory 347 Kyle Crystal, CMT, CFTe Chapter 16 Basics of Cycle Analysis 357 Kyle Crystal, CMT, CFTe Section IV Markets And Volatility 371 Chapter 17 Markets, Instruments, Data, and the Technical Analyst 373 Michael Kahn, CMT Chapter 18 Equities 376 Michael Kahn, CMT Chapter 19 Indexes 382 Michael Kahn, CMT Chapter 20 Fixed Income/Bonds 391 Michael Kahn, CMT Chapter 21 Futures 400 Michael Kahn, CMT Chapter 22 Exchange-Traded Products (ETPs) 407 Michael Kahn, CMT Chapter 23 Foreign Exchange (Currencies) 412 Michael Kahn, CMT Chapter 24 Options 417 Michael Kahn, CMT Chapter 25 Understanding Implied Volatility 424 Russell Rhoads Chapter 26 About the VIX Index 436 Russell Rhoads Section V Behavioral Finance and Other Theories of Market Dynamics 451 Chapter 27 What Is the Efficient Market Hypothesis? 453 Edwin T. Burton and Sunit N. Shah Chapter 28 The EMH and the "Market Model" 461 Edwin T. Burton and Sunit N. Shah Chapter 29 The Forerunners to Behavioral Finance 469 Edwin T. Burton and Sunit N. Shah Chapter 30 Noise Traders and the Law of One Price 474 Edwin T. Burton and Sunit N. Shah Chapter 31 Noise Traders as Technical Traders 482 Edwin T. Burton and Sunit N. Shah Chapter 32 Academic Approaches to Technical Analysis 492 Andrew W. Lo and Jasmina Hasanhodzic Chapter 33 Market Sentiment and Technical Analysis 506 Michael Carr, CMT, CFTe Chapter 34 Sentiment Measures from Market Data 510 Michael Carr, CMT, CFTe Chapter 35 Sentiment Measures from External Data 519 Michael Carr, CMT, CFTe Section VI Basic Statistics For The Technical Analyst 527 Chapter 36 Introduction To Descriptive Statistics 529 Jonas Elmerraji, CMT Chapter 37 Introduction To Probability 542 Jonas Elmerraji, CMT Section VII Perspectives On Technical Trading Systems 551 Chapter 38 Objective Rules and Their Evaluation 553 David Aronson Chapter 39 Being Right Or Making Money 568 Ned Davis Chapter 40 The Model-Building Process 598 Ned Davis Chapter 41 Relative Strength as a Criterion For Investment Selection 613 Robert A. Levy Index 629