To all those who did not dedicate

A Practical Guide to Swing Trading by Larry Swing 
8 The Essentials of Technical Analysis 
8.1 Intro 
We humans have a very hard time making fast decisions with complicated info. That 
is why, as human traders, we try to simplify trading as much as possible, in order to 
scan fast & accurate trading opportunities in a few seconds. As Albert Einstein used 
to say: keep things as simple as possible nut not any simpler! 
The following Technical Analysis (TA) tools are part of the daily charting arsenal: 
Candle stick 
Volume 
Equivolume 
MA (???) 
Force Index 
DMI 
Up/Down/In/Out 
... 
8.2 Why does Technical Analysis work? 
Simply because the large professional traders cannot help leaving behind 
considerable evidence regarding their opinion on the direction of the market: volume 
provides clues as to the intensity of a given price move... 
The key is psychology: you trade people, not stocks. People never change...most 
traders keep on making the same mistakes again and again...luckily for us. Read this 
again and think about it! 
8.3 The Basics
A stock price is determined by an exchange between buyers and sellers. If there 
happens to be more buyers than sellers then the market goes up. On the contrary, if 
there happens to be more sellers than buyers then the market goes down. Logical! 
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A Practical Guide to Swing Trading by Larry Swing 
The price at which a stock is offered affects the trader's decision. If a trader is long 
and the stock starts to decline, the trader could be forced to close his position. If 
short, he might do likewise on a rising stock. 
When a trader takes a long position, he becomes a potential seller, while short 
positions are held by potential buyers. As prices change due to buying and selling 
pressure, information about the condition of the stock is revealed by the combination 
of price and volume action.