Trading With Charts for Absolute Returns, (+ Website)

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