Synopses & Reviews
From an all-star team of trading expertsa revolutionary charting system guaranteed to dramatically improve the accuracy of your entries and exits and to bolster any portfolio
Advanced Charting Techniques for High Probability Trading
Trading is all about predicting future stock price movements, and the best tool for accurately predicting the future price movements of stocks, industries, or entire markets is technical analysis. But with more than 175 technical indicators to choose fromand over 4 million ways to combine themfinding the perfect combination of technical indicators is a daunting challenge to say the least. Millions of traders have spent countless hours attempting to unlock the key to timing the markets and almost all invariably fail. The perfect technical analysis package is the holy grail of trading.
Developed over decades and proven by tens of thousands of successful trades by the authors and Compound Stock Earnings clients, the remarkably easy-to-use methodology described in this book provides readers with a total charting system that has been proven to be the most accurate and predictive charting method ever to be made publicly available.
This book shares a proprietary charting system of twenty reformulated indicators and a precise method of reading the indicators to understand future stock price direction with incredible accuracy. Previously only available to enrollees in the authors' prestigious Compound Stock Earnings 2-Day Advanced Charting Seminar, this book gives you:
- Powerful rule-based charting strategies guaranteed to allow you to accurately and profitably time your buy, hold, and sell decisions.
- Proven techniques for reading the twenty proprietary indicators in a set combination and order developed by the authors. The indicators include modified settings for straight line charts, modified candlesticks, Bollinger bands, channel indicators, stochastics, moving averages, zones, PSAR, FTL, and more.
- Free access to CSE's companion website featuring the proprietary Advanced Charting Tool. No set up or judgment is required by the reader.
- A treasure trove of additional tools, resources, real-world trading examples, updates, instructional videos, podcasts, and more.
- Priceless insights and information about the Covered Call, LEAPS, Directional Option, and Credit Spread trading approaches developed by the authors and used successfully by thousands of CSE clients over the past eleven years.
The book is the definitive holy grail of technical analysis. It is the one and only book you will ever need on the subject. The methods discussed and taught in this book have changed the financial lives of thousands of CSE clients over more than a decade. With a little study and effort, it will change your financial life too.
Advanced charting techniques have historically not been a part of the Compound Stock Earnings method. Rather, the focus of the CSE method has been to understand simple bias in stock price direction and to act accordingly. When a stock is high in its current cycle, the bias is down. When a stock is low in the current cycle, the bias is up. To understand this bias, a simple straight line (or open high low close) chart is used. This method of understanding simple bias has been applied, and proven successful, for years using the CSE Covered Call, LEAPS and Credit Spread techniques. This book will utilize charting to identify the four phases of a cycle--the Birth, Momentum, Exhaustion and Death Phases, and to reap the benefits of getting in and out of a stock in order to maximize profits.
An all-star team of trading experts describe an array of proven charting techniques to bolster any portfolio
*Purchase includes a 30-day free trial of Advanced Charting Platinum Selections software and generate returns of up to 3 percent per day.*
There are over 175 recognized technical indicators that have been developed by traders, mathematicians and chartists to help traders make more accurate predictions about the price movements of individual securities, asset classes and the market as a whole. These technical indicators are never used alone but applied in various combinations. Developed and tested over many years by the authors, the highly reliable strategies described in this book combine a variety of charting techniques, which, when used in conjunction, have been shown to yield extremely accurate predictions about a stock's movements through the four cyclical phases of Birth, Momentum, Exhaustion and Death.
- You get powerful strategies, using a range of technical indicators, guaranteed to significantly improve your ability to more accurately—and profitably—time buy, hold and sell decisions
- The material in this book is currently required reading for the authors' prestigious Compound Stock Earnings (CSE) charting course
- Includes a special link to the main CSE website where you'll find a treasure trove of additional content, updates, and instructional videos and podcasts
- Provides valuable insights and information about the Covered Call approach to trading, a style about which Joseph R. Hooper is an internationally recognized expert
Technical analysis (or, in laymen's terms, simply "charting") is the study of a security's past price and volume movements in the hope of predicting that security's future price movements. Technical analysis exploits the fact that market psychology influences the price and trading patterns of a security and that these trading patterns are repeated time and time again.
While the existence of repetitive trading patterns and definitive market cycles has been proven in innumerable studiestechnical analysis remains somewhat of a mystery for most investors and traders. The issue is that while the vast majority of investors and traders actually do recognize that technical analysis does work, most people in the market do not know how to correctly analyze a chart.
At last count, there were more than 175 recognized technical indicators. Of these 175 indicators, most traders will use a combination of four to ten indicators in order to assist with buy and sell decisions. However, what most traders don't realize is that each individual technical indicator can be set up with potentially twenty (or more) different time periods. Each time the time period is changed, the indicator will produce a different buy or sell signal. So, with just four indicators, we have the potential for eighty different settings. Each different combination of indicators and settings will produce a different buy and sell signal. Now extrapolate this variety of combinations and settings across 175 indicators and you have 4 million different combinations!
The fact that there are 4 million different ways to set up technical indicators leaves the vast, vast majority of traders in a perpetual state of guessing and testing. The odds of finding the perfect combination of indicators in any one lifetime is zero to none.
Technical analysis works. It works so well that thousands of our clients make upwards of 20% per month using these techniques. In order to make such astonishing monthly returns, traders simply need the right combination of indicators, the right settings, and the right order in which to analyze them in.
This book details a combination of twenty correctly set, proprietary indicators and the order in which you are to read them. This information represents decades of work and millions of dollars in testing, reformulating, development, and real money trading. After you have learned this charting method, you can predict the future price movement of stocks and the overall market with astonishing accuracy. This book is the holy grail of technical analysis. It is the most accurate and predictive technical analysis method ever to be made publicly available. The information in this book is what millions of traders "guess and test" for their entire trading lives, but rarely, if ever, find.
About the Author
Joseph R. Hooper
has been a property developer, stockbroker, and bank owner. He is the founder of Compound Stock Earnings and is now a financial educator, radio talk show host, and one of the world's foremost experts on covered calls. In the early 1980s, Hooper formed a bank holding company, purchased banks, directed their operations, and then sold them in the early 1990s. Later, he joined Merrill Lynch as a private client advisor, using his Covered Calls technique for client accounts.
Aaron R. Zalewski has a background in the finance industry, where he worked as an analyst within the investment banking industry. Zalewski left that profession to pursue a career as a full-time investor and is now Director at Compound Stock Earnings. He co-host's Compound Stock Earnings' weekly financial talk-back radio program, Unconventional Wi$dom—The CSE Investment Show, and is coauthor of the book Covered Calls and LEAPS: A Wealth Option.
Edwin L. Watanabe retired after thirty years in the commercial design business after learning the Covered Call and LEAPS techniques from Compound Stock Earning's principals, Joseph Hooper and Aaron Zalewski. During his thirty years in business, Ed traded as a hobby and, like many, pursued the frustrating task of trying to find a technical analysis method that consistently worked. While using the CSE Covered Call and LEAPS techniques for retirement income, Ed found himself with ample time to revisit the technical analysis methods that had frustrated him for thirty years. What followed was a three-year odyssey where he reformulated, tested, and back-tested thousands of combinations of indicators. Finally, he stumbled across a combination that consistently worked and began applying that combination to his Covered Call and LEAPS trading—with staggering results. Ed was averaging the highest monthly returns of any of the thousands of successful traders taught by Compound Stock Earnings.
After sharing this new methodology with CSE principals Joseph Hooper and Aaron Zalewski, Advanced Charting became part of the CSE curriculum and has now been taught and applied successfully by thousands of CSE traders. Ed is now Director of CSE's Advanced Charting program, teaching the CSE 2-Day Advanced Charting Seminar and running the CSE Advanced Charting Platinum Selections service. Ed's teachings have now been responsible for the creation of many millionaires and have allowed thousands of CSE clients to retire earlier than they ever thought possible.
Table of Contents
Chapter 1: Introduction to Advanced Charting 1
Why Use Charting? 2
Advanced Charting Techniques 4
Validating the V 6
Advanced Charting Upper and Lower Indicators 6
Chapter 2: Straight-Line Chart 9
Straight-Line Charting/Parallel Channels 11
Chapter 3: Direction of a Trend 13
Four Phases of a Cycle 15
Moving Averages Defined 18
Moving Average 1: Lead MA1 (White) M1 19
Moving Average 2: M2 (Green) 27
Moving Average 3: M3 (Blue) 30
Chapter 4: Moving Average Crossovers 33
M1 (White) Crossing M2 (Green) 33
M1 (White) Crossing M2 (Green) and Then Crossing M3 (Blue) 35
12 Key Points of M1, M2, and M3 Crossovers 35
Supplementary Moving Averages 44
Chapter 5: Bollinger Bands, PSAR, Channels, Zones, and FTL 51
Channel Indicators: C1, C2, C3 57
Friday Target Line 61
Chapter 6: Putting It All Together: MAs and the BBs 63
Window 1-Chart 1 Analysis 67
Chapter 7: Lower Chart Indicators L1 through L4 71
Defining the Lower Chart Indicators 73
Chapter 8: The Second Chart: Window 2-Chart 2 85
Modified Candlestick 85
Understanding the Modified Candlestick 87
Pivot Points: Support and Resistance 94
Lower Indicators: L5 to L8 95
Chapter 9: Recap of Advanced Charting 105
Entering New Positions on the Roll Up above M2 106
Roll Up Below M2 107
Touch/Convergence: Example 1 108
Touch/Convergence: Example 2 108
True V/Double V 109
The 10-Cent Rule 109
Entering New Position on the Roll Up 110
Upward Momentum Confirmed 111
Exit the Position When Price Tic Falls through M1 111
TSS for Income 111
TSS: Stacked Up with M1 Rolling Down 112
TSS: Upward Moving M1 and Roll at M2 113
When to Buy Back a TSS 114
Chapter 10: RS: Advanced Charting Relative Strength Indicator 117
Comparing the Relative Strengths 119
Chapter 11: Momentum Trading and Trading the Moment 123
Momentum Trades 124
Tomato Fields 126
Recap of the Momentum Trade 127
Trading the Moment 128
About the Authors 137
30-Day Free Trial 139