Rating: 
- Disappointment
I'm a trader, history graduate, not a software/designer/ engineer.
"Trading Classic Chart Patterns" is not a book with rules to trade chart patterns: entry, exit, failures ....
Only statistics.... I read: this book is for novice trader: novice of what? high school software engineer?
Ratings: 28%
Rating:
- Original, different
There are tons of books in the market on chart patterns but most seem to be copying out from the same sources or from each other. There are only a handful of books that really attempt to see how well these patterns work and under what circumstances. This is one of the better book in this group.
This can be heavy reading if you are not a detail oriented person. I do not agree with all his methodologies in coming up with the statistics and scores but that is absolutely better than nothing. The methods are more refined than my own first attempt so I feel I learn something from his approach and it is worth the money (and the weight to carry the book)
The person who complained about the trend channels missing should look at his other book - Encyclopedia of chart patterns, which is also a delight.
I wouldn't take the statistics blindly though as these numbers can vary greatly under different assumptions and circumstances.
Rating:
- Masterful Analysis of Chart Patterns
This 439-page book is authored by Thomas Bulkowski, a successful full-time investor and trader for over 20 years. In his spare time, he previously penned the Encyclopedia of Chart Patterns (2000). For those investors and traders who want to know the performance characteristics of specific popular chart patterns, this book provides the nuts-and-bolts.
The book is not light reading and requires a great deal of concentration if you expect to get the most out of it. If you are beginning investor or trader then you may want to wait a bit until you've mastered you chart patterns and terminology before delving into this book. If you like statistical data and like to work with numbers, then this book will make you happy. Each chapter on the chart patterns follow a similar template so that you know what to expect in future chapters as far as format is concerned.
The book is divided into two parts. Part I (85 pages) presents new research on trendlines, support and resistance, placing stops, selling considerations, and common trading mistakes. Part II (about 300 pages) reviews in detail 14 chart patterns (market tops and bottoms, head-and-shoulders, rectangles, triangles and scallops - rounded bottoms). Bulkowski also provided a 19-page summary of the bullish and bearish patterns with their performance statistics. Also included is a 9-page glossary and the methodology used to determine the statistics for each pattern.
To give you flavor as to one of Bulkowski's findings, consider the most bullish trading patterns. He found the best performance was the descending triangle pattern with an upside breakout. He found the average rise after the breakout for a short-term pattern was 49%. The next best was breakouts from an intermediate-term rectangle pattern with a 42% average rise. And long-term triple bottoms can in third with a return of 41% after breaking out
He looked at the most popular patterns and found the characteristics that make them tick.
Bulkowski developed a chart pattern scoring system that helps select better performing chart patterns to trade. Scores above zero infer that the pattern will most likely beat the median, while scores below the median infer that the pattern will be a non-performer. Bulkowski also includes a few case studies for each pattern to aid in the understanding of the patterns and scoring system.
Bulkowski suggests that you use the information in the book on the behavior of chart patterns with the scoring system, combined with your own research (such as how the industry group is behaving) and other technical and fundamental indicators to develop your own trading strategy.
Overall, Bulkowski presents a masterful text on the most-often used chart patterns. But instead of giving you generalities, he provides specifics based upon detailed statistical analysis. Knowing which patterns work best under which conditions will certainly put the odds of investment success in your favor. Therefore, I highly recommend this book to serious students of the market. This is money well-spent.
Rating: - recomended for begginers at the lowest level.
Still have to include trendline channel support and ressistance lines that a a breakout will trigger a trend reversal signal And the usual support and resistance lines connecting pivot points that a breakout will trigger a long term trading range signal.
So, he ignores this and goes on generating statistics that are worthless.
For example consider a head and shoulder failuer after breakout above the neckline. That could be because there is a ressistance line just above the neckline that restrict price advance causing it to decline, that failuer has nothing to do with the Head and shoulder formation. so you get wothless statistics
There is one free web site that shows all support and ressistance lines and gives buy/sell recomendation. Investtech.com that the author should read. it addition to that they use artificial inteligence to determine the strenght of the formation, Also include volatility, liquidity accumulation/distribution moving average and volume.
Rating: - Finally an excellent book on Chart patterns
I'm a software developer writting a program to do chart patterns. I used his first book, but there were conceptual pieces missing. This book fills in the gaps and more. This is an excellent buy and well worth the money! If you are serious about Chart Patterns, then I would suggest this book as a first read and then the encyclopedia of Chart Patterns as a reference. Good humor in the book as well. I like that.
- DisappointmentI'm a trader, history graduate, not a software/designer/ engineer.
"Trading Classic Chart Patterns" is not a book with rules to trade chart patterns: entry, exit, failures ....
Only statistics.... I read: this book is for novice trader: novice of what? high school software engineer?
Ratings: 28%
Rating:
- Original, differentThere are tons of books in the market on chart patterns but most seem to be copying out from the same sources or from each other. There are only a handful of books that really attempt to see how well these patterns work and under what circumstances. This is one of the better book in this group.
This can be heavy reading if you are not a detail oriented person. I do not agree with all his methodologies in coming up with the statistics and scores but that is absolutely better than nothing. The methods are more refined than my own first attempt so I feel I learn something from his approach and it is worth the money (and the weight to carry the book)
The person who complained about the trend channels missing should look at his other book - Encyclopedia of chart patterns, which is also a delight.
I wouldn't take the statistics blindly though as these numbers can vary greatly under different assumptions and circumstances.
Rating:
- Masterful Analysis of Chart PatternsThis 439-page book is authored by Thomas Bulkowski, a successful full-time investor and trader for over 20 years. In his spare time, he previously penned the Encyclopedia of Chart Patterns (2000). For those investors and traders who want to know the performance characteristics of specific popular chart patterns, this book provides the nuts-and-bolts.
The book is not light reading and requires a great deal of concentration if you expect to get the most out of it. If you are beginning investor or trader then you may want to wait a bit until you've mastered you chart patterns and terminology before delving into this book. If you like statistical data and like to work with numbers, then this book will make you happy. Each chapter on the chart patterns follow a similar template so that you know what to expect in future chapters as far as format is concerned.
The book is divided into two parts. Part I (85 pages) presents new research on trendlines, support and resistance, placing stops, selling considerations, and common trading mistakes. Part II (about 300 pages) reviews in detail 14 chart patterns (market tops and bottoms, head-and-shoulders, rectangles, triangles and scallops - rounded bottoms). Bulkowski also provided a 19-page summary of the bullish and bearish patterns with their performance statistics. Also included is a 9-page glossary and the methodology used to determine the statistics for each pattern.
To give you flavor as to one of Bulkowski's findings, consider the most bullish trading patterns. He found the best performance was the descending triangle pattern with an upside breakout. He found the average rise after the breakout for a short-term pattern was 49%. The next best was breakouts from an intermediate-term rectangle pattern with a 42% average rise. And long-term triple bottoms can in third with a return of 41% after breaking out
He looked at the most popular patterns and found the characteristics that make them tick.
Bulkowski developed a chart pattern scoring system that helps select better performing chart patterns to trade. Scores above zero infer that the pattern will most likely beat the median, while scores below the median infer that the pattern will be a non-performer. Bulkowski also includes a few case studies for each pattern to aid in the understanding of the patterns and scoring system.
Bulkowski suggests that you use the information in the book on the behavior of chart patterns with the scoring system, combined with your own research (such as how the industry group is behaving) and other technical and fundamental indicators to develop your own trading strategy.
Overall, Bulkowski presents a masterful text on the most-often used chart patterns. But instead of giving you generalities, he provides specifics based upon detailed statistical analysis. Knowing which patterns work best under which conditions will certainly put the odds of investment success in your favor. Therefore, I highly recommend this book to serious students of the market. This is money well-spent.
Rating:
- recomended for begginers at the lowest level.Still have to include trendline channel support and ressistance lines that a a breakout will trigger a trend reversal signal And the usual support and resistance lines connecting pivot points that a breakout will trigger a long term trading range signal.
So, he ignores this and goes on generating statistics that are worthless.
For example consider a head and shoulder failuer after breakout above the neckline. That could be because there is a ressistance line just above the neckline that restrict price advance causing it to decline, that failuer has nothing to do with the Head and shoulder formation. so you get wothless statistics
There is one free web site that shows all support and ressistance lines and gives buy/sell recomendation. Investtech.com that the author should read. it addition to that they use artificial inteligence to determine the strenght of the formation, Also include volatility, liquidity accumulation/distribution moving average and volume.
Rating:
- Finally an excellent book on Chart patternsI'm a software developer writting a program to do chart patterns. I used his first book, but there were conceptual pieces missing. This book fills in the gaps and more. This is an excellent buy and well worth the money! If you are serious about Chart Patterns, then I would suggest this book as a first read and then the encyclopedia of Chart Patterns as a reference. Good humor in the book as well. I like that.