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Best book on technical analysis for beginners
- Thread starter roniy1985
- Start date
Quote from oilfxpro:
From the guy who hired and helped others to help starving people.
look, you said the "eyeball strategy" was a crapshoot....but that's how it's done. There are no hard and fast rules. It takes thousands of hours to get it. Think of the old pit traders you read stories of. They would see, hear and smell fear and greed around them all day. When it was time to act, the best just knew it and did what they had to do. It's no different with a computer, you watch the numbers/the charts/whatever and if your good you just know when you have to act.
Quote from intradaybill:
Technical analysis was a naive method for trading the markets people used in the 1980s and 1990s. They lost so much money that TA can be safely declared one of the most effective wealth transfer mechanisms ever developed and put in use.
Let me ask you a question: would you try to solve a partial differential equation with split boundary conditions by hand? This is what you are doing when looking at charts trying to find patterns to profit from. Do you think hedge funds and professionals use TA? The answer is NO. They use algorithms that process price action and determine probabilities.
Still, if you insist on learning a thing of the past that I ensure you won't make any money for you in its simple form taught in books, you can find anything you want along with statistics in Bulkowski's website. If you want to buy a book buy his:
http://thepatternsite.com/
At least one book that was mentioned here was written in the 1940s. Come on you people! Most of the charts in that book are about companies that do not exist today. It is an authoritative, dogmatic piece with no explanations or justifications and you are supposed to believe the authors, no questions asked. Bulkowski is much better and down to earth. He has done a lot of work and he gives probabilities.
Here is an article in the price action lab on TA and on some of its recent failures:
http://bit.ly/A5EeVP
Bill, don't you think price action patterns would be of much greater value if you apply an estimate of their probability in the current market conditions?
Quote from bizhobby:
Bill, don't you think price action patterns would be of much greater value if you apply an estimate of their probability in the current market conditions?
Price action is a farse because no matter what plots anything can happen.
Everything fails and works so much its almost like random.
In fact, it also chops a great deal, which adds to the trader damage, the end result is horrible, except the gurus post their history charts making it look simple.
Quote from intradaybill:
Let me ask you a question: would you try to solve a partial differential equation with split boundary conditions by hand? This is what you are doing when looking at charts trying to find patterns to profit from. Do you think hedge funds and professionals use TA? The answer is NO. They use algorithms that process price action and determine probabilities.
http://bit.ly/A5EeVP [/B]
The HFT I used to know made average >$30,000 per day. His ROI was in the thousands of percent per year. Then, other automated trading systems caught up with him. His profits fell, then his firm stopped trading.
Quote from FreakofNature:
Price action is a farse because no matter what plots anything can happen.
Everything fails and works so much its almost like random.
In fact, it also chops a great deal, which adds to the trader damage, the end result is horrible, except the gurus post their history charts making it look simple.
I'll add to this.
If you see a double bottom fade it, has a better chance of breaking, thats how useful this "price action" is. The more I study the more convinced I am, that most double bottoms break and most double tops end the same.
Just try to shoot in favor of the trend, very important, because whatever is going higher has a greater chance of going higher, and vice versa
Quote from roniy1985:
I'm a beginner with everything that has to do with technical analysis...
After some research, I think one of the two will help me a lot in the next few months and maybe even start trading a little:
"Investing with Volume Analysis: Identify, Follow, and Profit from Trends" by Buff Pelz Dormeier
http://www.amazon.com/gp/product/0137085508/ref=ox_sc_act_title_3?ie=UTF8&m=ATVPDKIKX0DER
OR
"Technical Analysis: The Complete Resource for Financial Market Technicians, Second Edition" by Charles D. Kirkpatrick II
http://www.amazon.com/gp/product/0137059442/ref=ox_sc_act_title_4?ie=UTF8&m=ATVPDKIKX0DER
Which of the two will do the job? I don't want to get into books from 1990 because I think they are outdated and newer books can do a better job.
Thanks
Here is my bookmarks , they are far better than reading any book IMHO.No book will cover so much.It is about the realities of trading.
Enjoy.
Attachments
Tech analysis of financial markets my J. Murphy.
Honestly, investopedia will tell you all this stuff for free. It's all the same information.
How many ways can you describe a rising/falling wedge?..how many different ways can you describe a flag, pennant, or triangle pattern?...
You don't need to spend money bro.
Honestly, investopedia will tell you all this stuff for free. It's all the same information.
How many ways can you describe a rising/falling wedge?..how many different ways can you describe a flag, pennant, or triangle pattern?...
You don't need to spend money bro.
I read the Dormier book. It's not good. It's not specific enough. His overarching theme seems like common sense, which is basically - big money players cannot hide their volume tracks, but there are serious issues with the way he tries to interpret those volume tracks.
I could go into way too much detail ripping his theory apart on specific pages where I took issue with him, but it would be a waste of my time. If you want to read the book, I encourage you to do that, but check it out from the library, or download the pdf if there is one. But don't buy it.
I could go into way too much detail ripping his theory apart on specific pages where I took issue with him, but it would be a waste of my time. If you want to read the book, I encourage you to do that, but check it out from the library, or download the pdf if there is one. But don't buy it.