Technical Analysis Demystified: A Self-Teaching Guide

by Constance Brown

Book Overview

Learn all about technical analysis and chart a course for a stable financial future

Interested in incorporating technical analysis into your investment strategy but feeling a bit at sea when it comes to making sense of all the charts and tools? Here's your lifeline With help from Technical Analysis Demystified, you'll have big profits in your forecast.

Chartered Market Technician Constance Brown explains the many different...

• Format: Paperback
• Language: English
• ISBN: 0071458085
• ISBN13: 9780071458085
• Release Date: January 2008
• Publisher: McGraw-Hill Companies
• Length: 304 Pages
• Weight: 1.10 lbs.
• Dimensions: 0.6" x 7.4" x 9.3"

Customer Reviews

A skim over some advanced methods, and a few specifics

Constance Brown has a unique approach to the markets in my view. Her writing about her trading is incomplete in each instance of her published work, so all of her work needs to be read to get a firm grasp of the concepts and apply something to your own trading. So a person looking to this book as a beginner textbook is going to be disappointed. Each of the methods I have seen in her other books is mentioned here, but with different depth. She does go into some specific trades, but the detail and organization of the examples is somewhat unclear. For a trade example we understand that we need a reason to buy or sell, with a stop to protect and a target to aim for. We need at least a specified risk reward and we need to risk no more than 3% on a trade and 10% of our account at one time. These concepts are drawn in an inconsistent manner from example to example, but you do get the general idea after reading the book. There are many more books on money management that will explain these essentials in much more detail. I prefer Van Tharps "Trade Your Way.." for money management info. Some of the most advanced ideas on price projection, which is the cornerstone of her work, will need a lot more study. Her book on Fibonnacci analysis will be a help there. Her planetary cycle work is shown but is not dealt with in detail. We understand that multiple cycles coming together can create a time confluence just like in her price projection work, and therefore more confidence can be gained. Like the other books, you are given a peek in the door, but will definitely want to do more work to undertand the concepts and solidify the methods if you want to use them. In the end, you will come up with your own methods after study and that is really the goal. Just don't expect this book to lay out a trading system that you can apply without a lot of thought and work. So I do think this book is worth the price. Just know that you'll either be motivated to read the rest of her work (which will benefit your trading in the long run) or not. If not, you'll find this book to be incomplete.

An Important Contribution for All Traders

Serious and not casual beginners and advanced traders will find this text a pearl. Connie Brown's expertise is a given however just like my French professor at City College she expects all to do intense homework. The text illustrates trading concepts that will require burning the midnight oil to understand and use them successfully. MS Brown illustrates exactly how to apply the important tools. She does employ her own Composite Oscillator (which I use in my own trading) and compares its divergence to the RSI as an important sign for price reversal. She points out that there are hidden secrets of importance in those oscillator squiggles that we usually disregard as noise. The importance of simultaneous signals given at different time intervals and by different tools is illustrated. The late February 2007 market pullback is illustrated by use of divergence in a three day chart. I checked that and found the lack of divergence in the one day chart. That could have been discussed but was not addressed. She illustrates momentum oscillator details (Stochastic, (Stochastic flutter), MACD with fast and slow settings, Gann price prediction (mentioned but not detailed), Astronomy as a timing method (illustrated briefly), and cycles. She incorporates these techniques with Elliott wave and Fibonacci retracement and projection in detailed analysis of trading case histories that are invaluable to study in detail. Price reversals were surprisingly left out and will have to be studied in her other works. They were apparent in some of the examples however other points were highlited at the time. In conclusion, this book represents observations and discussion from a master trader. Her motivation is strictly academic. She points out the most important tools you will need to meticulously study to be a successful trader. You will find out what you really don't know. Glenn Tisman, M.D.