Rating: - Put it to the test, secone review
If you use Bulkowski Head and Shoulder trading tactics ( page 273) you will be disappointed. Computer testing (1968 - 1986) produced low profits of only 8.85 NYSE points when using his system.

More conditions , such as symmetry of pattern, neckline penetration,and volume confirmation ( decling volume at tops and rissing volume at bottoms) will produce better results.

If he uses pivot point channels to define resistance line of HS bottom formation, (neckline in this case) and act on upward breakout. This method will produce 95.93 NYSE points profit.

Furthermore, optimized with .75 points trailing stops produced even better results than 1/8 traling stop in his system. In conclusion, this book lacks backtesting and optimizatiuon and therefore its ...

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Rating: - The best book on chart patterns
All 43 chart patterns. One chapter for each type. Well organized and easy to read. Every chapter describes Upside Breakouts, Downside Breakouts, Tour, Identification Guidelines. Focus on failuers, Statistics, Trading tactics and Sample trade.

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Rating: - excellent book, the ultimate
I have been trading formation from this book and I have made a lot of money so far. I recommend this book for beginners and advanced students.

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Rating: - monk
The book must be the ultime "bible" for anyone interested in technical analysis and Bulkowksi made a "monk" job. I am very grateful for this book that can be used as an encyclopedia during the analysis of charts. More than any of my(many) books it is value for money!.

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Rating: - THE Best book on Chart Analysis
Whether you are a novice or experienced technician, the Encyclopedia of Chart Patterns is a much needed reference.

I have read many of the "best" books on Technical Analysis, and ALL of them pass off unsubstansiated market folklore as competent, rigorous analysis. This book actually makes an attempt to prove some of its claims with evidence, making it a stand head-and-shoulders (forgive the pun) above the rest.

Bulkowski does an excellent job of describing various formations, providing performance statistics, such as percentage of correct and failing trades, average gains (or declines) and most likely gains or declines.

No book is perfect--I could think of a number of ways to improve the it: 1) some stats on inter-rater reliability--could several chartists see these formations using these rules, and do they come to the same conclusion (bullish, neutral, bearish)? 2) Do chart patterns work better on different types of stocks (large vs. small cap) or sectors 3) how important is the market (or sector) trend when evaluating a pattern? Should bearish patterns be given less weight in a rising market? Testing the patterns over several market cycles would also help. The scope for creative, individual research is endless.

I would hope this book sets a new standard in the technical analysis literature--actually trying to provide some quantitative evidence for theories.

Market technicians, who are always looking for respect from fundamentally oriented traders, should follow Bulkowski example and become more scientific in their approach.