At its foundation, technical analysis involves recognizing and analyzing trends, and identifying the best investment strategy to take advantage of them. Most traders and investors who look for trends do so by analyzing a long list of charts on a continuing basis. In Trend Analysis and Confirmation, world-renowned technical analysis researcher Charles D. Kirkpatrick III presents a tested, pinpoint approach to stock investing that is far more effective and efficient.
Drawing on statistical testing of markets from 1970 to the present, Kirkpatrick identifies combinations of technical tests that have consistently delivered the best performance. Using these tests, he shows how to identify the stocks that are now demonstrating the strongest relative and absolute strength. Next, he identifies specific trend following indicators most likely to identify the first signs of trend reversals – and, thus, the right time to sell.
Throughout, Kirkpatrick offers detailed, practical, and example-rich guidance for using each indicator, providing all the detail you need to implement an investment strategy that is both profitable and risk-averse.
Key Features
- Choosing stocks, timing buy and sell decisions: trend-based, evidence-driven explanations of what to do, how to do it, and why.
- Specific advice from one of the world’s leading technical analysts, backed with modern statistical tests that identify the best combination of indicators to use.
- Identifying early signs of weakness: indispensable market timing techniques for maximizing gain and protecting capital from loss.
- Reflects Charles D. Kirkpatrick III’s 45 years of experience as an investor, trader, advisor, and world-renowned technical analysis researcher/instructor.
Praise for Kirkpatrick's Investment & Trading Strategies
“This book should be in the library of every serious trader, investor or portfolio manager. It brings out clearly the essential elements needed to construct and test systems for investing and trading successfully in stocks. The author vigorously backtests algorithmic, rule based systems. Writing in plain, understandable language, the author clarifies the advantages of the ‘walk forward’ method for testing and optimizing strategies and the importance of well-defined exit rules for risk control and profitability. Indeed, everything from portfolio stock selection to short-term trading systems are well defined and thoroughly tested.”
--Hank Pruden, Ph.D., Professor of Golden Gate University and Chairman of Technical Securities Analysts Association of San Francisco.
“Charles Kirkpatrick does an excellent job of laying out a complete investment strategy, from stock selection through money management. Even seasoned pros will learn something new about relative strength, ADX, and optimization.”
--Lawrence G. McMillan, President of McMillan Analysis Corp. and author of Options as a Strategic Investment.
“The wisdom of a true master! My highest recommendation! Kirkpatrick, a highly respected professional at the peak of his long and varied investment career, distills all of his 47 years of intensive study and experience into this concise book that spells out in detail his best strategies--so that you can profit from his deep, hard-won knowledge.”
--Robert W. Colby, CMT, author of The Encyclopedia of Technical Market Indicators.
“Charles Kirkpatrick has been producing top-notch work for years, as evidenced by his multiple Dow Awards and top-rated books. And his work keeps getting better. He doesn’t just hypothesize about market movements. He backs up his ideas with real, quantified data. This book is another very impressive addition to the Charles Kirkpatrick library of work. Well done!”
--Rob Hanna, founder of QuantifiableEdges.com and OvernightEdges.com.
Contents
- Chapter 1: Introduction
- Chapter 2: Investment Strategies: Backtesting
- Chapter 3: Initial Standard Optimizations
- Chapter 4: Market Timing and Walk-Forward Optimizing
- Chapter 5: Stock Selection Using Relative Strength
- Chapter 6: Trading Strategies
- Chapter 7: Directional Movement Index (DMI) and the ADX
- Chapter 8: Cycles and the Forward Line
- Chapter 9: Trading Models and Tests
- Index
About the Author
- Charles D. Kirkpatrick II has spent 45+ years in investing as a security analyst, portfolio manager, block desk trader, options trader, and institutional broker. He continues to publish his Market Strategist letter, calculate award-winning stock-selection lists, write books on trading and investing, and teach technical analysis at universities. He has appeared on CNBC and Wall Street Week and has been quoted in Barrons, Money, and BusinessWeek. Twice the winner of the Market Technicians Association’s prestigious Charles H. Dow Award, he is the coauthor of Technical Analysis: The Complete Resource for Financial Market Technicians and author of Beat the Market and Time the Market.
Book Details
- Hardcover: 160 pages
- Publisher: FT Press; 1 edition (c2014)
- Language: English
- ISBN-10: 013259661X
- ISBN-13: 978-0132596619
- Product Dimensions: 9.1 x 6 x 0.7 inches
- List Price: $49.99