Trading with Charts for Absolute Returns (Hardcover)

Introduction ix A Note about Performance Results xii CHAPTER 1 Absolute Return in a Competitive Market Environment 1 Players in Commodity and Stock Markets 1 The Role of Risk in Commodity and Stock Markets 7 Diversification Matters 9 CHAPTER 2 Absolute Return and Methods of Price Analysis 11 Nothing Is Better Than Correct Timing 11 Buy-and-Hold Strategies 14 Benchmarking as an Investment Strategy 14 Fundamental Analysis 15 Technical Analysis 20 CHAPTER 3 Absolute Return and Chart Pattern Recognition 29 Fibonacci Ratios and Clusters 29 Fibonacci and the Elliott Wave Principle 44 Candlestick Chart Patterns 56 3-Point Chart Patterns 64 CHAPTER 4 Absolute Return Results by Trading with Trend Channels and Trend Lines 79 Basic Requirements for Trading on Chart Pattern Recognition 79 Ascending and Descending Trend Lines 85 Trend Channels 96 An Integrated Trading Concept Based on Trend Lines and Trend Channels 113 Advanced Charting Techniques 123 Summary 136 CHAPTER 5 Absolute Return Results by Trading with the PHI-Ellipse 141 The Basic Structure of the PHI-Ellipse 141 What Makes the PHI-Ellipse Such a Special Trading Tool? 146 What Has Been Learned about the PHI-Ellipse Since the Last Book Came Out Seven Years Ago? 148 The Rationale behind PHI-Ellipses as Trading Tools 157 Application of PHI-Ellipses 181 PHI-Ellipses in Combination with Other Fibonacci Trading Tools 190 Exploiting the Forecasting Capabilities of PHI-Ellipses 194 Summary 197 CHAPTER 6 Trading Stocks for Absolute Return 199 Trading a Single Stock 200 Trading a Diversified Portfolio 204 Trading a Diversified Stock Portfolio with the Dax Futures Index as a Trend Indicator 207 Final Remarks 211 About the Companion Web Site 215 Acknowledgments 217 About the Author 219 Index 221