John L. Person – A Complete Guide to Technical Trading Tactics

Preface ix

Acknowledgments xv

CHAPTER 1 Introduction to Futures and Options:Understanding the Mechanics 1

How the markets work, the elevator analogy, product for the times, important terminology such as margin, contract specifications, and leverage

CHAPTER 2 Fundamentals: The Market Driver 19

Supply and demand issues, economic growth and productivity effects, major economic reports and their in role in market prices

CHAPTER 3 Technical Analysis: The Art of Charts 33

Western-style bar charts and key reversals, point-and-figure charts that focus only on price, market profiling, price and time analysis

CHAPTER 4 Candle Charts: Lighting the Path 43

Enlightening charting technique and its colorfully named patterns—hammers, stars, spinning tops, dojis, hanging man, and others—powerful reversal patterns, reliable continuation patterns, key examples in the dollar and bonds

CHAPTER 5 Chart Analysis: Volume, Open Interest, Price Patterns 67

Volume and open interest rules for traders, M tops and W bottoms, trend lines, measuring patterns, the head-and-shoulders, triangles, pennants and flags, diamonds, wedges, funnels, gaps, islands, rounded bottoms, oops signals, opening range breakouts

CHAPTER 6 Pivot Point Analysis: A Powerful Weapon 93

The pivot point formula for target trading, calculating support and resistance levels, importance of multiple verification from several sources, the P3T trading technique, weekly and monthly charts and numbers, risk management techniques

CHAPTER 7 Day-Trading, Swing Trading: Acting on Analysis 113

Trading to bounce off target numbers, calling tops and bottoms, weekly chart magnets, harami cross and other candle clues to market reversals, pivot points save the day, lining up the stars, the verify-verify-verify approach

CHAPTER 8 Technical Indicators: Confirming Evidence 135

Moving averages and trends, simple rules with averages, tweaking and visualizing MACD, stochastics, false signals, Gann’s key numbers, Fibonacci ratios and projections, time counts for cycles, Elliott wave and its clues

CHAPTER 9 Market Sentiment: What Traders Are Thinking 161

Getting a market consensus from contrary opinion, Commitments of Traders reports, margin rate changes, Market Vane Bullish Consensus report, put-to-call ratios, volatility index (VIX), when the boat is tipping over, media effect

CHAPTER 10 Order Placement: Executing the Plan 171

Importance of getting an order right, online platform concerns, impact of market conditions on orders, 14 top order entry selections you need to know, orders in after-hours trading, spreading concepts

CHAPTER 11 The Mental Game: Inside the Trader 189

Conquering fear, learning discipline, improving confidence, suggestions for success, I’ll-think-about-it syndrome, the paper trader, fear and greed factors, becoming a specialist, setting up an investment diary, setting a positive mind frame, dealing with adrenaline, establishing goals, positive affirmations, stress relief techniques, rewarding success to build success

CHAPTER 12 The Tactical Trader: Tips and Techniques That Work 203

Pyramiding approaches, scale trading, stop reversals, breakouts, momentum trading, the Friday 10:30 a.m. rule, stop placement near a magnet, trading multiple contracts

CHAPTER 13 Options: A Primer 217

What options are and how to use them with futures, simple puts and calls, options premiums, the Greeks, comparison shopping, strangles and straddles, eight top option spreads, delta neutral techniques

CHAPTER 14 Closing Bell: My Top 10 List 235

What the experts suggest, top 10 trading thoughts, measuring success

Glossary 241

Bibliography 253

Index 255