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

Discussion in 'Technical Analysis' started by kmgilroy89, Jun 14, 2012.

  1. 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.
     
    #101     Jun 16, 2012
  2. Mysteron

    Mysteron

    #102     Jun 16, 2012
  3. jnbadger

    jnbadger

    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.
     
    #103     Jun 17, 2012
  4. 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.
     
    #104     Jun 17, 2012
  5. 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.
     
    #105     Jun 17, 2012
  6. zdreg

    zdreg

    statement is incorrect. he wants you to short what he is short. he wants you to go long what he is already long.
     
    #106     Jun 19, 2012
  7. Indeed it is. But Opie didn't know.
     
    #107     Jun 19, 2012