Sentiment Indicators: Renko, Price Break, Kagi, Point and Figure - What They Are and How to Use Them to Trade

ISBN-13: 9781576603475 / Angielski / Twarda / 2010 / 288 str.

Abe Cofnas

Opis

A practical guide to profiting from the proper use of sentiment indicators In Sentiment Indicators, noted trading expert Abe Cofnas draws on his own trading and training experience as he shares his knowledge about the latest techniques and strategies for using Renko, price break, Kagi, and point and figure tools to successfully analyze all markets. Written with the serious trader in mind, Sentiment Indicators offers key information on these potential-filled tools and how to use each in shaping trading strategies. Along the way, it provides a practical overview of how to implement these little-known indicators and why each can enhance your trading endeavors.

• Shows how these indicators work in different markets: futures, equities, forex, and others
• Provides a solid understanding of charting techniques and uses real-world examples to illustrate strategies and tactics
• Presents new sentiment research that analyzes word mining and what it means for markets

From historical context and Robot Trading alerts to the critical factors of a trading system, Sentiment Indicators presents a proven approach to trading that will help you identify conditions that have a high probability of profit.

Spis treści

Acknowledgments.

Introduction.

The Decision Path of the Trader.

1 The Geometry of Emotions and Price Action.

Building Investor Emotional Intelligence.

2 Price Break Charts: Key Concepts.

High–Probable Entry Conditions.

What are Price Break Charts? Basic Concepts.

Reversal Distances: A Key Metric.

Consecutive High and Low Close Sequences.

Is the Reversal Serious?

3 General Trading Strategies for Applying Price Break Charts.

Trading in the Direction of the Trend after a Counterreversal Block.

Join the Trend after the Appearance of the First or Second Reversal Block.

Fibonacci Resistance Confirmation.

Countertrend Scalper.

Always–In Strategy.

Flip–Flop Reversal Entry.

Momentum Trading Six–Line Break.

Price Break and Volume Data for Equity Charts.

Multiple Setting Intervals and Price Break Charts.

4 Applying Price Break Charts to Markets and Data.

S&P 500: Price Break Chart Patterns Using the Day Chart.

Crude Oil and Price Break Charts.

Microdetection of Sentiment Reversals The Use of Price Break Charts for Momentum Trading.

Price Break and Tick–Level Price Action.

Six–Line Breaks and Fibs.

5 Channel Patterns, Cycles, and Price Breaks.

Cycles and Price Break Charts.

6 Multiple Market Applications of Price Break Charts.

Contemporaneous Visual Correlation of Instruments.

Volatility and Price Break Charts.

Price Break Charts and Sentiment Data: Innovative Applications.

Price Break Charts and the Global Financial Crises.

7 Price Break Charts and Option Trading.

Selecting Direction with Price Break Charts.

Selecting the Strike Price.

Risk Reversal Price Break Charts Analysis for Currency Traders.

Price Breaks and Currency Volatility Smiles.

8 Renko Charts Revived: The Microdetection of Sentiment.

What is Renko Charting?

Tactical Trading Rules for Renko Charts.

Key Components of a Renko Charts Trade.

Step 1: Renko Chart Setting Sizes and Time Intervals.

Step 2: Select Chart Time Interval: Use Three Time Intervals.

Step 3: When a Trade Enters the Average Target of Profi tability, Turn On the Renko Charts.

Time and Bricks.

Renko Charts and Economic Data Release Trading.

Using Renko Charts to Enter Positions.

Renko Charts in Multiple Markets.

Renko Charts and Six–Line Break: Tools for the Scalper.

Renko Bricks at the Tick Level.

Renko and Volume.

9 Kagi Charts: Waiting for the Turn of Sentiment.

Kagi Chart Basics.

Buy and Sell Signals with Kagi Charts When Yin Turns to Yang.

Kagi Charts: The Keys to the Turn of Sentiment.

Quantifying Kagi Charts.

Kagi versus Candlesticks Which Is Better?

10 Point and Figure Charts.

How Point and Figure Charts Work.

Variations in Settings in Selected Markets.

Combining Chart Types.

11 Integrating Price Break, Kagi, Renko, and Point and Figure Charting.

Using the Price Landmark Matrix.

12 New Directions in Sentiment Analysis: Charting Words.

Decreasing Frequency Comparison.

13 Beyond the Trend: Cycle Indicators Independent of Time.

Cycle Detection and Projection.

Epilogue.

Index.

O autorze

Abe Cofnas is the forex trading columnist for Futures magazine since 2001 and has written over 100 columns on forex trading strategies and tactics. He is also the author of two Wiley titles, The Forex Trading Course and The Forex Options Course. He has, for over two decades, provided fundamental and technical analysis on trading strategies in currencies and inter–markets. He is the founder of learn4x.com, which provides private coaching and seminars on currency trading. In 2008, he formed FXDimensions Inc., a third–party trading system and signal development company that has pioneered the concept of Trading Avatars. He is a recognized expert in technical analysis and has lectured in London and Dubai (with appearances on CNBC Arabia) and continues to work with students and businesses abroad. Mr. Cofnas holds a master′s in political science, and a master′s in public policy from the University of California, Graduate School of Political Science, and the Goldman School of Public Policy, at the University of California, Berkeley.

Blurb

Praise for Sentiment Indicators – Renko, Price Break, Kagi, Point & Figure: What They Are and How to Use Them to Trade

"By marrying technical analysis and market sentiment, Abe Cofnas takes the art of interpreting the markets′ topological patterns to a new level. Sentiment Indicators shows us why shapes count."
Steve H. Hanke, Professor of Applied Economics, Johns Hopkins University

"The process of extracting alpha in today′s markets grows increasingly challenging as strategies become more automated, technology becomes more robust, and the market as a whole becomes more dynamic. Abe Cofnas′s ability to quantify market sentiment gives traders an effective means to compete in this new paradigm. Sentiment Indicators provides one–of–a–kind insight into the world of proprietary trading strategies and serves as a solid framework for those professionals looking to further enhance their current trading protocols, as well as those seeking viable inputs in the programming of black box and algorithmic trading models."
John Netto, President, M3 Capital, and author of Spread Trading EurexEquity Index Futures: A Guide for Traders

"Abe Cofnas does a great job in delivering how traders can profit from the proper use of Sentiment Indicators. This book is a must for all traders. I highly recommend it!"
John Person, founder, NationalFutures.com

"Maybe you′re already using technical and fundamental analysis to guide your portfolios. But if you′re not also looking at sentiment indicators, then you′re missing out. Sentiment indicators provide you with improved skills in filtering the noise of the market. And Abe Cofnas′s book is a must–have manual for anyone working to grow their market knowledge and individual wealth."
Addison Wiggin, three–time New York Times bestselling author; Executive Producer, I.O.U.S.A.; and Executive Publisher, Agora Financial