Robert M. Lee - Timing Solutions for Swing Traders

Contents

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers professional and personal knowledge and understanding.

The Wiley Trading series features books by traders who have survived the markets ever changing temperament and have prosperedsome by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

For a list of available titles, please visit our Web site at www.WileyFinance.com .

Copyright 2012 by John Wiley & Sons Singapore Pte. Ltd.

Published by John Wiley & Sons Singapore Pte. Ltd.

1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: 6566438000, fax: 6566438008, e-mail: .

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for any damages arising herefrom.

Other Wiley Editorial Offices

John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA

John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom

John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada

John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia

Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

ISBN 978-1-118-33917-6 (Hardcover)

ISBN 978-1-118-33918-3 (ePDF)

ISBN 978-1-118-33919-0 (Mobi)

ISBN 978-1-118-33920-6 (ePub)

Foreword

Like many practitioners, my collection of books on technical analysis has grown over the years. In the initial years, during the 1980s, when such books were few and far between, I bought almost indiscriminately. Later, as my knowledge of the markets and analytical methods grew, my purchases became more selective. This well-written book, which focuses solely on the equity markets, will occupy an important place on my bookshelf along with Roberts first little gem of a book, Power Tools for Traders (1997).

Timing Solutions for Swing Traders has something for the novice as well as the seasoned trader. The first few chapters serve as both a learning aid for beginners and as a refresher course for the more experienced practitioner, while the latter chapters show how to combine and use the indicators and methods discussed to create a trading plan.

I found Roberts innovative approach to multiple moving averages, which he calls the Queuing Theory of Moving Average Crossovers (QMAC), to be very interesting. I particularly liked the way he dissects the interplay of long-term moving averages to anticipate major support and resistance levels and his use of colored candlesticks to differentiate between trending and non-trending phases based on simple but effective concepts.

It is the last chapter, on financial astrology, written by Peter, that I found to be most fascinating. Having never explored this area beforeand not being very esoterically inclinedI found the material quite easy to follow. The astrology-based approach to selecting stocks, in combination with the more accepted methods of analysis along with the section on projecting future trends based on planetary influences, definitely merits further study. I hope the authors explore this fascinating new area in more detail, with examples from other equity markets and perhaps the currency markets, in a future publication.

I have known Peter since he was a rookie broker, and in recent years, I have come to know Robert as well. I have observed firsthand how their approach to analyzing the stock market can produce quite extraordinary results. Robert and Peter have many more innovative indicators and methods between them and I look forward to reading their next offering.

Ananda Bhaumik

Private Banker

Hong Kong

Preface

The title of this book, Timing Solutions for Swing Traders: Successful Trading Using Technical Analysis and Financial Astrology , defines its mission. It is all about detecting trend and exploring the best timing to trade. The first eight chapters are authored by Robert and cover comprehensive aspects of technical analysis, including a summary on the Theory of Elliott Wave Principle and the Queuing Theory of Moving Average Crossovers. The last chapter was contributed by Peter. It introduces the application of financial astrology to picking stocks and cycles, to finding the best period to trade, and to ascertaining the best period of your personal Part of Fortune.

The book covers four dimensions related to trend analysis: price patterns, volume, price momentum, and price moving averages. The objective is to decipher price trend and to develop the most effective and profitable method to trading. It will show how to use financial astrology in lunar cycle trading, select stocks with the best potential, and find the best time for profitable trading. And, it will introduce readers to the emerging trend of fusing technical analysis with cycle analysis and financial astrology.

This book is not about day trading of stocks and is not intended for day traders. Day traders are very short-term players and they make trades during market hours in one trading day. This is a book primarily for people who work from 9 to 5 and who do not have the spare time to monitor their stocks closely during the day. They are more likely to be position traders who make longer-term trades that may last from several days to several months, and can only find time after office hours in the evening. Many of them would like to have some sort of technical analysis method that can help them take better care of their trades, but they just do not know where to start. They would like to read charts. However, there are so many methods and systems to pursue that the whole process becomes somewhat overwhelming. This book is dedicated to these people who want to be more proactive traders. It will demonstrate a simple and practical approach to doing just that. It will not require the purchase of expensive and sophisticated software, as we are dealing only with end-of-day data and not real-time data. Other than the examples of charts in financial astrology, we are using MetaStock software and end-of-day data subscribed from data vendors to illustrate the charts. The formulas in the samples of this book are enclosed for the benefit of the readers. These formulas are not exhaustive or definitive; readers can of course amend them to suit their own style of trading. MetaStock also has many other popular indicators and systems available.