A good starting and reference point for learning Technical Analysis.
If you are relatively new to the financial markets, chances are that technical charts may seem overwhelming at first. This is a great book if you want to learn the logic of technical analysis. It is written in a very interactive and smooth flowing manner. The content is broken down into 20 chapters most of them describing different types of patterns and interpretations. The further classification of these occurrences into reversals and continuation patterns really gives the readers a firm basis to learn. He discusses the psychology of the candlestick patterns which will help the readers to understand the subject ground up. The book is filled with charts and drawings making it all the more exciting. He has also dedicated a few chapters for the study of indicators like Moving averages, Fibonacci retracements, MACD, Oscillators, open interest etc. This can help you refine your skill set. The questions at the each chapter is a very useful learning tool. This field of knowledge is presented in a very ‘dependable’ way and most of the writing seem optimistic from the word go.
One of the drawbacks of this book is that it does lay emphasis on the effect of market cycles. For instance, the condition of the overall market would play a significant role in determining the patterns. Also I think the significance of the patterns differ from a case to case basis.
This book will be most useful to people who believe in:
Short Term trading
Directional trading
Timing the market
Algorithmic trading and coding strategies
Technical stuff more than fundamentals
It is an enjoyable read. Specialized knowledge is not required to understand this one.