Clarifications and Corrections
Technical Analysis from A to Z
***Second Edition***
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Most of these changes were corrected in the sixth printing of the second edition. However, the changes on page 294 and 343 are still required in the most recent edition.
35 In the second paragraph, the fourth sentence says, "..."Buy" arrows were drawn when the Stochastic Oscillator peaked in overbought territory and "sell" arrows indicate when..."  It should say, "..."Sell" arrows were drawn when the Stochastic Oscillator peaked in overbought territory and "buy" arrows indicate when..."  The chart shows the buy/sell arrows correctly, but the accompanying text has the terms switched.
106 In the calculation for the Commodity Channel Index, the fifth bullet multiplies "Column H" by 0.015.  It is worth noting that the value 0.015 remains constant regardless of the number of periods in the index.  Lambert did this so the index would be in a range closer to +/-100.
121 In Figure 71 (at the top of page 121), the text says, "Sell arrows indicate when -DI falls below +DI."  This is backwards.  It should say "Sell arrows indicate when -DI rises above +DI."  The buy/sell arrows are drawn correctly and the other statement (regarding buy arrows) is correct.
130 In the first sentence on the page, the text says, "...the number of time periods used in the RSI calculation changes each day based on volatility."  It should say, "...the number of time periods used in the DMI calculation changes each day based on volatility."
233 The last paragraph on this page should be replaced with, "As with TRIN (aka the Arms Index), higher readings are usually bearish and lower readings are usually bullish. The dividing point between bullish (oversold) and bearish (overbought) is 0.90, rather than TRIN's 1.0.

Also similar to TRIN, extreme readings foretell a continuation of the current trend. The example in Table 51 shows that a reading of 1.0 is actually bullish (a continuation) rather than bearish (overbought)."

244 The second "bullet" on this page states, "Column D is first initialized to the Acceleration Factor Maximum (0.2 in this example)..."  It should say "Column D is first initialized to the Acceleration Factor Increase (0.02 in this example).

The first few rows of the Parabolic SAR in Table 54 (also on page 244) should be as follows (the remaining data in the table is correct):

A D F
Date Acceleration
Factor
SAR
10/01/99 0.02 88.3125
10/04/99 0.04 88.3588
10/05/99 0.06 88.5294
10/06/99 0.08 88.8501
10/07/99 0.10 89.2621
10/08/99 0.12 89.8422
10/11/99 0.12 90.4836
10/12/99 0.12 91.0481
294 The third bullet on page 294 incorrectly states how column G is calculated. Column G is actually column E divided by column F. The headings at the top of page 292 correctly state how column E is calculated.
318 The discussion on calculating the exponential moving average in STIX  mentions the value of "0.9" in three places.  This should be "0.09".
328 The numerator in the formula for the Swing Index should be:

C - Cy + 0.5 (C - O) + 0.25 (Cy - Oy)

343 The third bullet on this page incorrectly says, "Next, divide this value by the current value in Column F." It should say, "Next, divide this value by the previous value in Column F."
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