Has anybody read Technical Analysis The Complete Resource for Financial Market Tec...

Quote from kmgilroy89:

I bought Technical Analysis: The Complete Resource for Financial Market Technicians. It's like a textbook and I'm only through chapter 2. I want to read a chapter a day and do all the questions. It seems like a good book and my only complaint so far is that I wish it had an answer key for the questions. What do people on ET think of this book? Are there better books? Should I supplement it with something else?
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Getting back to the original post, the book looks like a textbook to be used in a college course on technical analysis. With more and more colleges offering courses on trading, I'm sure it targets a growing market. It has a similar academic feel to me as Harris's Trading and Exchanges, which I've observed gets generally positive reviews on trading message boards.

Could this book be useful in an introductory course on the subject of Technical Analysis? Sure, I don't see why not. The standard can't be that high.

Will studying either this book or Harris's take someone from zero to hero in trading? Let's not get silly.

In any case, here's a snippet that I think is representative of the book:

[page 296]
CONCLUSION
The basic way the technical analyst makes profits is by identifying a trend in prices and riding
that trend. At times, daily fluctuations in prices make it difficult for the analyst to view the basic
underlying trend in prices. Moving averages are tools used to smooth this erratic data, making it
easier to discern the genuine underlying trend.
Although there are various methods of calculating a moving average, the basic idea is to
give a summary of the average or normal price history of a particular period. Because the moving
averages are based on historical prices, by nature, they will be a lagging indicator of trends. The
shorter the period covered by the moving average, the less of a lag there will be. However, using a
shorter period also leads to more false signals. As usual, when choosing a moving average system,
there is a tradeoff between early trend reversal recognition and certainty of trend reversal. The use
of envelopes, bands, and channels around the moving average can minimize the number of false
signals by providing a larger range of price movement before a signal is triggered.
Box 14.1 gives a list of basic principles that the technical analyst should keep in mind. This
list provides a summary of some of the key points we have addressed in the past three chapters.

BOX 1 4 . 1 Trading Rules
In the past few chapters, we have covered a good deal of material regarding trends.
Here are some of the key points to remember when investing:
• Riding the trend is the most profitable use of technical analysis.
• Trends can be identified with trend lines, moving averages, and relative highs
and lows.
• Always pick a security that trends up and down. Flat or random trends are usually
unprofitable.
• Be aware of the next higher and lower trend from the one being traded.
• Always trade with the trend:
• 'Trend is your friend."
• "Don't buck the trend."
• Breakouts from support or resistance levels, patterns, or bands usually signal a
change in trend.
• A trend line breakout is at least a warning.
• The longer the trend, the more important the breakout.
•Confirm any breakout with other evidence, especially when entering a position.
In exiting, confirmation is not as important.
• Always use stops, protective and trailing.
• Do not sell profitable positions too soon; just keep trailing with stops.
 
Quote from icarus618:



[page 296]
CONCLUSION
The basic way the technical analyst makes profits is by identifying a trend in prices and riding
that trend. At times, daily fluctuations in prices make it difficult for the analyst to view the basic
underlying trend in prices. Moving averages are tools used to smooth this erratic data, making it
easier to discern the genuine underlying trend.
Although there are various methods of calculating a moving average, the basic idea is to
give a summary of the average or normal price history of a particular period. Because the moving
averages are based on historical prices, by nature, they will be a lagging indicator of trends. The
shorter the period covered by the moving average, the less of a lag there will be. However, using a
shorter period also leads to more false signals. As usual, when choosing a moving average system,
there is a tradeoff between early trend reversal recognition and certainty of trend reversal. The use
of envelopes, bands, and channels around the moving average can minimize the number of false
signals by providing a larger range of price movement before a signal is triggered.
Box 14.1 gives a list of basic principles that the technical analyst should keep in mind. This
list provides a summary of some of the key points we have addressed in the past three chapters.

BOX 1 4 . 1 Trading Rules
In the past few chapters, we have covered a good deal of material regarding trends.
Here are some of the key points to remember when investing:
� Riding the trend is the most profitable use of technical analysis.
� Trends can be identified with trend lines, moving averages, and relative highs
and lows.
� Always pick a security that trends up and down. Flat or random trends are usually
unprofitable.
� Be aware of the next higher and lower trend from the one being traded.
� Always trade with the trend:
� 'Trend is your friend."
� "Don't buck the trend."
� Breakouts from support or resistance levels, patterns, or bands usually signal a
change in trend.
� A trend line breakout is at least a warning.
� The longer the trend, the more important the breakout.
�Confirm any breakout with other evidence, especially when entering a position.
In exiting, confirmation is not as important.
� Always use stops, protective and trailing.
� Do not sell profitable positions too soon; just keep trailing with stops.
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After reading this, it's evident that someone from academia with a $2000 Etrade account has read about 100 books on technical analysis, and has combined them into nothing more than complicated mumbo jumbo for the "student" of TA.

There are much better books out there. Mark Fisher's The Logical Trader is one. Simple and powerful. Yes he trades.
 
Quote from cynic:

I see that as well.

Original question:

5 men dig 5 holes in 5 days
how many holes dig 10 men in 10 days?

In the posted question it did not specify 5 holes total or 5 holes each
Thinking it was a play on words...
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That would be: One man digs 5 holes in 5 days.

There is no play on words. It is a typical high school problem you flanked.
 
Quote from jack hershey:

Several people introduced aspects of logic theory here.

We found the OP is not disciplined.

We also found that the market's operation is not understood in terms of logic.

One of the greatest things separating the herd from the specialist is that some specialists use logic only as the foundation of their out of the box successes.

In this region of trading, there is little documentation of and by the practioners. Periodicals almost seem to avoid this region. academics missed it entirely.

The easieist solution to employing logic to decribe and anticipate market movement (the way in which capital is extracted) is to replicate the market's operation by using logic flow sheets.

Again a person has to have some education in logic. If or only If was proffered and corrected. Maybe, there is a narrow window of correct usage of logic here. Who knows, it doesn't get used at all which is telling.

In logic, the most important technical aspects are filtering, gating and kills. More important is record keeping.

The shift to logic occurred at about the same time the DOW theory was introduced for common information sharing. But there were no computers then.

Computers and markets both dictate the use of a common math. This algebra simplifies all trading.

As usual, the laziest approach became more common (using averages of data sets) and algebra did not get very far into the heard's reasoning processes.

PC's were invented recently. As a consequence languages drive hardware and not vice versa.

When all is said and done, the markets operate in a mostly counterintuitive way.

The only significant orientation for taking the markets full offer is to be parasitic, front running and technical. This means the minority is always correct. This is hard for the herd to get used to so, evidentally, there is no known method that has been introduced that has expired because of general adoption.

Currently, the financial industry is using induction and this means larger and larger data processing capability and the use of post doctoral massagers. In geology this is called making clay.

Therefore, by using deduction and algebra, the hugeness of markets assures a 100% corrolation of the parts and the result is no noise, no anomalies and no flaws. 53 years of use (inductive reasoning..LOL) suggest than no adjustments are ever required and broad usage (although it will never occur) would not denigrate the system.

Start in the middle. The test of the system is that you discover and handle logically all of the trend's finite cases.

As a compare and contrast of the CW to the deduced logic system, the most glaring contrast is the classification of signals. The older signals of CW were the best. The newer CW signals "morph". LOL. Logic signals are what leads to a fully differentiated system. All all logic signals occur in NOW or ahead of NOW. Logic reduces the precise narrow requirement set by the market to a singularity before the singularity occurs in NOW.

In most of the fields I work, I have always kept track of the hounds chasing the fox. Our living room has a gray fox with a forepaw resting on a small raised log. He is alertly gazing into his habitat to see what's up.

He sees that not much logic is being learned and a lot of scientists are ditching science to make clay out of the wrong signal data.
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Meaning eludes thoughtfulness if readers fail to accept valid neologisms bearing on particular creations of syncretic anachronisms of ancient theosophies too obscure to translate into agricultural terms of stunning immance inglorious to uphold.

You have totally fucking lost it, Jack, this post is 100% schiziphrenic word salad.
 
Quote from Duref Mudgins:

"Talking his book" means that he wants you to buy what he's short and short what he's long to get out of his positions.
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statement is incorrect. he wants you to short what he is short. he wants you to go long what he is already long.
 
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