Technical Analysis in Professional Trading Handbook 2 (GIUP Professional Trading)

Perhaps the most important application of technical analysis is its precise use in building trading strategies, and the understanding this provides into the mechanics of price action. This is the motivation behind Part 2 of the GIUP technical analysis handbook series.

Part 2 of this GIUP Handbook series goes much further than Part 1, and provides:
?A broader coverage of technical analysis and various indicators, both highlighting their limitations and providing examples of using them to make trades.
?An exploration into building a trading strategy.
?A helpful introduction into the confirmation of trends, buy signals and filters.
?A solid discussion about moving averages, the most widely used technical analysis tool after support, resistance and trendlines.
?An insight into moving average trading systems and stop-loss placement.
?An introduction to the most commonly used chart patterns: head and shoulders, double top/bottom, Dow Theory trends, triangle consolidations, market gaps and inland patterns. Fibonacci levels are also introduced.
?An introduction to the big two oscillators, RSI and MACD, and a discussion about false signals from early indicators versus the improved reliability of late indicators.
?A practical illustration of risk management, introduced via a thorough step-by-step illustration of making and risk managing the whole ‘lifecycle’ of a real case-example trade:

From the initial reasons behind the trade, to adjusting stop-losses during the active time window in response to events and, finally, the reasons behind the elusive take-profit exit decision, as well as how the trader may evaluate conflicting thoughts about the macroeconomics versus the technical aspects of this particular trade.