# Technical Analysis from A to Z

by Steven B. Achelis

PREFACE

Over the last decade I have met many of the top technical analysis "gurus" as well as shared experiences with thousands of newcomers. The common element I've discovered among investors who use technical analysis, regardless of their expertise, is the desire to learn more.

No single book, nor any collection of books, can provide a complete explanation of technical analysis. Not only is the field too massive, covering every thing from Federal Reserve reports to Fibonacci Arcs, but it is also evolving so quickly that anything written today becomes incomplete (but not obsolete) tomorrow.

Armed with the above knowledge and well aware of the myriad of technical analysis books that are already available, I feel there is a genuine need for a concise book on technical analysis that serves the needs of both the novice and veteran investor. That is what I have strived to create.

The first half of this book is for the newcomer. It is an introduction to technical analysis that presents basic concepts and terminology. The second half is a reference that is designed for anyone using technical analysis. It contains concise explanations of numerous technical analysis tools in a reference format.

When my father began using technical analysis thirty years ago, many people considered technical analysis just another 1960's adventure into the occult. Today, technical analysis is accepted as a viable analytical approach by most universities and brokerage firms. Rarely are large investments made without reviewing the technical climate. Yet even with its acceptance, the number of people who actually perform technical analysis remains relatively small. It is my hope that this book will increase the awareness and use of technical analysis, and in turn, improve the results of those who practice it.

*"Information is pretty thin stuff, unless mixed with experience."*

-Clarence Day, 1920

*Technical Analysis from A to Z*is reproduced here with permission from the author and publisher.

### Contents

- Preface
- Acknowledgments
- Terminology
- To Learn More
- Bibliography
- About the Author
- Technical Analysis
- Price Fields
- Charts
- Support & Resistance
- Trends
- Moving Averages
- Indicators
- Market Indicators
- Line Studies
- Periodicity
- The Time Element
- Conclusion
- Absolute Breadth Index
- Accumulation/Distribution
- Accumulation Swing Index
- Advance/Decline Line
- Advance/Decline Ratio
- Advancing-Declining Issues
- Advancing, Declining, Unchanged Volume
- Andrews' Pitchfork
- Arms Index
- Average True Range
- Bollinger Bands
- Breadth Thrust
- Bull/Bear Ratio
- Candlesticks - Japanese
- CANSLIM
- Chaikin Oscillator
- Commodity Channel Index
- Commodity Selection Index
- Correlation Analysis
- Cumulative Volume Index
- Cycles
- Demand Index
- Detrended Price Oscillator
- Directional Movement
- Dow Theory
- Ease of Movement
- Efficient Market Theory
- Elliott Wave Theory
- Envelopes (Trading Bands)
- Equivolume/Candlevolume
- Fibonacci Studies
- Four Percent Model
- Fourier Transform
- Fundamental Analysis
- Gann Angles
- Herrick Payoff Index
- Interest Rates
- Kagi
- Large Block Ratio
- Linear Regression Lines
- MACD
- Mass Index
- McClellan Oscillator
- McClellan Summation Index
- Median Price
- Member Short Ratio
- Momentum
- Money Flow Index
- Moving Averages
- Negative Volume Index
- New Highs-Lows Cumulative
- New Highs-New Lows
- New Highs/Lows Ratio
- Odd Lot Balance Index
- Odd Lot Purchases/Sales
- Odd Lot Short Ratio
- On Balance Volume
- Open Interest
- Open-10 TRIN
- Option Analysis
- Overbought/Oversold
- Parabolic SAR
- Patterns
- Percent Retracement
- Performance
- Point & Figure
- Positive Volume Index
- Price and Volume Trend
- Price Oscillator
- Price Rate-of-Change
- Public Short Ratio
- Puts/Calls Ratio
- Quadrant Lines
- Relative Strength, Comparative
- Relative Strength Index
- Renko
- Speed Resistance Lines
- Spreads
- Standard Deviation
- STIX
- Stochastic Oscillator
- Swing Index
- Three Line Break
- Time Series Forcast
- Tirone Levels
- Total Short Ratio
- Trade Volume Index
- Trendlines
- TRIX
- Typical Price
- Ultimate Oscillator
- Upside/Downside Ratio
- Upside/Downside Volume
- Vertical Horizonal Filter
- Volatility, Chaikin's
- Volume
- Volume Oscillator
- Volume Rate-of-Change
- Weighted Close
- Williams' Accumulation/Distribution
- Williams' %R
- Zig Zag