CONTENTS
Preface
Introduction
- Indian Stock Markets -- A Quick Overview
- Working of the Indian Stock Markets
- Why People Invest
- Derivatives
- Speculation
- Arbitrage
- Technical Analysis
- Charting
- Summary
The ADX -- Finding Out if the
Market is Trading or Trending
- What Average Directional Index (ADX) Is
- What ADX Indicates
- Directional Movement
- Identifying the Strength of a Trend by Using Positive and
Negative Directional Indicators
- Weaknesses of ADX
- Summary
Trend Lines
- What Are Trend Lines?
- How Trend Lines Are Drawn
- Up Trend Line
- Down Trend Line
- Validation of a Trend Line
- Internal Trend Lines
- Trend Lines as Support and Resistance Levels
- Trend Channels
- Using Trend Lines in Conjunction with Other Indicators
- Combining Trend Lines with Candlesticks
- Candlestick Patterns
- Using Candlesticks in Conjunction with Trend Lines
- Summary
Reversal Patterns - 1: Head and
Shoulders, Basing
Formation, Broadening Formations
- Types of Chart Patterns
- What Reversal Patterns Are
- Head and Shoulders Pattern
- Inverted Head and Shoulders Pattern
- Failed Head and Shoulders Pattern
- Double Top Pattern
- Double Bottom Pattern
- Basing Formation
- Broadening Formations
- Summary
Reversal Patterns - 2:
Ascending Triangles, Descending
Triangles, Symmetrical Triangless
- Triangles
- Symmetrical Triangles
- Summary
Continuation Patterns - 1:
Flags, Pennants and Wedges
- What Are Continuation Patterns?
- How Continuation Patterns are Different from Reversal Patterns
- Flag Patterns
- Pennant Patterns
- Requisites of Valid Continuation Patterns
- Continuation Patterns on Weekly and Monthly Charts
- Wedge Pattern
- Rectangle
- Summary
Continuation Patterns - 2:
Ascending and Descending Triangles
and Head and Shoulders as Consolidation Patterns
- Triangles
- Head and Shoulders as a Continuation Pattern
- Summary
How to Use Volume and Open
Interest
- Volume
- On Balance Volume (OBV)
- Open Interest (OI)
- Put-Call Ratio (PCR)
- Price Volume Data
- Summary
Important Momentum Indicators:
Moving Averages, RSI and Stochastic
- Momentum
- Different Markets, Different Indicators
- Moving Averages (MA)
- Moving Average Convergence Divergence (MACD)
- Leading Indicators
- Summary
Using Momentum for Entries and
Exits -- and How to Use the ABC Wave
- Using Moving Averages for Making Entries
- Use of MACD for Making Entries
- Use of MACD Histogram for Making Entries
- Use of RSI and Stochastic for Making Entries
- ABC Wave and Momentum Setup
- Example of a Real Trade Using Momentum Indicators
- Summary
Money Management: How Much
Capital to Risk on Each Trade
- Money Management
- Risk Reward Ratio and Your Success Rate
- Pyramiding and Martingale
- Margin and Leverage
- Money Management Rules for Trading Nifty Futures
- Money Management Rules for Trading Individual Stock Futures
- Exit Strategies
- Summary
Putting It All Together: Sector
and Stock Selection
- Building Your Road Map
- Importance of Sector Selection in Selecting Individual Stocks Trade
- Importance of Sector Rotation
- Example of a Real Trade
- Summary
Mind of the Successful Trader
- Emotions You Need to Overcome to Trade Well
- Common Mistakes Many Traders Make
- How to Think When Trading
- Steps to Trading Success
- Laws of Human Nature
- Qualities of a Good Trader
- Visualization to Improve Trading Performance