How Technical Analysis Works

by Bruce M. Kamich

Book Overview

Since the early 1960s, the number of different investment instruments has multiplied. Currencies now float, and interest rates can fluctuate sharply. Money moves around the globe easily and around the... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0735202702
• ISBN13: 9780735202702
• Release Date: December 2002
• Publisher: Prentice Hall Press
• Length: 320 Pages
• Weight: 1.40 lbs.
• Dimensions: 1.0" x 6.2" x 9.3"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

Great Introduction: Practical Common Sense, Little Vodoo, No Magic

Kamich's book is not for the expert technical analyst or a professional day trader. It is appropriately respectful of quantitative and fundemental analysis, limits its discussion to the most proven and reliable indicators, and offers some clever speculation about the underlying dynamics of market structure and market participants that explains why technical analysis may be useful. It also provides a little history of technical analysis back to Dow. The most provocative parts for me were the sections on gap analysis, volume confirmation, and his excellent chapter on reversals. For someone who either does not know anything about technical analysis or else thinks of it as the astrology of modern finance (or the Rorschach Ink Blots), Kamich's book is a solid and sensible introduction that is as convincing as it is useful. Note that this is not a catelog of all the major technical indicators or trends in technical analysis. For that book, buy "Murphy's Technical Analysis of the Financial Markets" also from the NY Institute of Finance. Whether you believe in technical analysis or not, know that the people you are trading against do use these techniques and either way you should know what other participants are seeing in terms of signals and opportunities. This book is an exceptional start.

A fresh new book on technical analysis.

Bruce Kamich has written one of the best books on technical analysis that I've seen in a long time. Unlike most introductory books, it neither over simplifies, nor does it make it seem as if you need a PhD to learn how to use technical analysis. The book explains how and why technical patterns and indicators work in an entertaining way. On top of that, the examples of patterns in the book are not "text book". You actually get to see what these things might look like in the real world instead of the perfect picture you see in most books. This is invaluable. On top of that, the book is a bargain!

Solid Advice for Chartsists, Technicians of All Levels

Barron's named this book one of the best of the year - and for good reason. "How TA Works" is a friendly and easy-to-read (but not *too* simple) guide to charting and technical analysis. Instead of focusing on a single methodology, this book provides an arsenel of tools and explains how they're used for market timing, stock selection, and risk management.Many of the studies and tools used in the book can be used for free or little $ at TA sites like Prophet ..., the source for charts in the book. It's definitely a good idea to learn from this book while trying it out with the online charts at the same time. That way, you can see how different studies, for example, work on different stocks. Also, comparing the price to other books in this genre, "How TA Works" is a very good value. Highly recommended, the market not withstanding...

How Technical Analysis Works

As a student of markets and an industry employee, I've read numerous books. After reading Mr. Kamich's book, it's clear that he's put in a tremendous amount of effort and has leaned heavily upon his extensive experience. As a subscriber to a popular quote/news vendor that he works for, I know that he has successfully transalated some of his real life experiences into this book. A distinguishing feature of this book is the idea that the reader should think alongside the various examples. This is extremely helpful. Too many books give you the gospel - easy to chew through, but not helpful in real life. Trading is very much an individual pursuit, so having the reader think and react, not told, is quite refreshing. This is probably not a book for newbie's, but for everyone else, you'll be pleased. Let's hope a cequel is in the offing!

How to execute

Being in the business and a professional technical analyst, I have read many books on the subject, but "How Technical Analysis Works" is truly unique. If you are looking for black and white explanations of technical definitions, indicators, patterns, etc, this is probably not the book for you. However, if you want to learn how to use all of the tools at a technical analysts disposal in the real world, this is your book. There are enough books out there describing how to calculate a stochastic or RSI indicator, Mr. Kamich instead takes his many years of experience and explains how you should use these indicators in real-time. A distinctive feature of this book is his emphasis on thinking outside the box - almost challenging the reader to open his/her mind. This is highlighted by the examples (especially the chart patterns) he includes with his text. The chart examples he has chosen are not the picture perfect examples that rarely happen in real-time, but the type of patterns that challenge you to visualize scenarios that you may not have noticed at first glance. Although Bruce goes into great details in his explanations, this is an easy read that you will really enjoy. For those of you looking for an advantage over your fellow market participants (who isn't, especially in this market environment!), pick up "How Technical Analysis Works" - it is well worth the investment.