Chart Your Way to Profits, Second Edition shows you how to use the powerful technology available online in conjunction with technical analysis to assess markets and make the most profitable trading decisions possible. In the book, author Tim Knight discusses the key aspects of technical analysis and reveals how to design your own charts and indicators in a way that enables you to easily monitor the markets and make solid trading decisions. This new edition discusses a wider range of technical tools within ProphetCharts and shows you how to evaluate and compare industry sectors and groups of stocks to identify the best trading opportunities.
Author’s Introduction:
One of my favorite photographs was taken by my wife on our honeymoon. We were on the second leg of our trip, the first of which was in Dubrovnik, Croatia, and the second in central Italy. The photo shows me in bed, apparently asleep. The title of the book I am holding across my chest is clearly legible: Technical Analysis of Stock Trends, by Edwards and Magee. Charting the financial markets has been my passion for over 20 years. The very first trade I ever placed in my life was on Black Monday, the crash of 1987—hardly a propitious start. But the markets and their vagaries have fascinated me ever since.
In 1992, I took my three main areas of interest—computers, trading, and business—and combined them to create Prophet Financial Systems. That was before the commercial Internet even existed. Over the years, we built a wide array of tools, all with the purpose of trying to help people make better trading decisions.
To be honest, I personally find books about technical analysis kind of boring. They are full of indicators, formulas, tables, and numbers. By and large, they put me to sleep (witness the honeymoon photo). I set out to make this book different. I wanted you to enjoy learning from this book, and I wanted to use as many real-life examples as possible. Hypothetical charts mean little, in my opinion. So you will find this book packed with hundreds of examples drawn from real trading in U.S. equity markets. This should give you a practical way to see how to apply the ideas presented in these pages.
Contents:
- Technical Analysis
- Fundamentals of Chart Creation
- Modules and Preferences
- Watch Lists and Chart Styles
- Market and Data Types
- Indicators in Action
- Multiple Studies and Comparisons
- Trendlines and Reversals
- Expansion and Channels
- Rounded Tops and Saucers
- Cup with Handle
- Multiple Tops and Bottoms
- Head and Shoulders
- Pattern Recognition
- Fibonacci Drawings
- Power Features
- For Bears Only
- A Practical Guide to Trading
Chart Your Way To Profits: The Online Trader's Guide to Technical Analysis with Prophet Charts By Timothy Knight pdf
Legend Newman (verified owner) –
Sorry Tim. I follow his blog everyday. He has great insight for the market. But in the book, he talks way too much about Prophet charts which he founded years ago and sold for dear price. And the plots he has in the book after a couple of pages just seems to be so repetitive. I couldn’t even finish it to the end.
Ulises Blake (verified owner) –
Unlike a lot of the other books I have read on trading, this book actually uses REAL LIFE examples! This book is straight to the point and easy to read. I really enjoyed reading this book. If you want to learn to be a trader or better yourself as a trader, I recommend buying this book.
Addisyn Ayers (verified owner) –
Mr. Knight’s book has given me a renewed appreciation for “the art of the chart.” We who day trade predominately tend to put charting into the background and concentrate on and trade pure price. In a future filled with near limitless probabilities, chart analysis can be a potent tool in assessing higher probability outcomes. Well written as well as concise, Mr. Knight’s book belongs in every trader’s library.
Yamileth Klein (verified owner) –
A book without a theme or a message. Knight has published as many fiasco’s as his trading career. He has lost money for many years but purports himself to be an “expert” on charting and technical analysis. Knight is many things but in the world of stock trading he is nothing.
Amanda Shaw (verified owner) –
This book is a exceptionally well written primer on technical analysis as well as a users manual for ProfitCharts by the author of this charting system and well known professional money manager, Tim Knight. In the book Tim illustrates examples of chart patterns and the use of the tools of ProfitCharts in a careful, systematic fashion. On his on-line blog The Slope of Hope he allows the reader to follow his own use of these tools on his own portfolio of positions in a huge array of common stocks and exchange traded funds. The tools and techniques illustrated can be of use to both the professional money manager as well as the individual who manages his own portfolio of stocks and funds. As he does in the blog he shares his own personal history as an investor and financial instrument developer in a refeshingly open fashion which make him not only an expert but an especially likeable teacher. I have met Tim in person and communicated with him by e-mail as well as follow his postings on a daily basis. He and his book have added to my knowledge and ability to manage my own investments. I am grateful to him and admire his ability to share his knowlege and skills.
Oaklynn Jacobson (verified owner) –
Read this AND watch Tim offer his thoughts everyday on TastyTrade. (I am not affliated, but I love his work.)
A real pro and a great guy, this is a must read for all T.A. enthusiasts. A slightly different way of looking at charts than most, but it will open your eyes as you pull back to view top and bottoms differently. I know, I did. Great read, thanks Tim!
Della Hayes (verified owner) –
I’m new to this art but have studied hard for over a year now. Tim Knight’s charts, explanations and software have enabled me to better predict from what I knew before.
Legacy Duffy (verified owner) –
I tend to read books of this type as a college text with highlighter in hand. The highlighter was not used as much as I thought it would be. A lot of info on what Profit Charts has and can do, but no insight into using it, or perhaps I missed that part because I tend to zone out when the obvious is sort of restated. The book almost goes too far in telling you what every click on tab will show, but I was looking for something to tell me that ‘When you see this, it means … and you should react thus if you are in position A, and counter if you are in Position B.’ This is more of a software guide and not a how to.
Elliot Cantrell (verified owner) –
This is the best book on technical analysis that I have read so far. Tim’s show on Tasty Trade prompted me to get this book.
Marco Wagner (verified owner) –
As an individual investor, I’ve read many books over the past 15 years on technical analysis of stocks. I was compelled to buy Tim’s Book after seeing some posts and videos by him about his charting tool “Prophet” (now part of the Think or Swim platform). In reviewing these on-line materials, I found that Tim’s easy-going and user-friendly style refreshing. Tim clearly knows his stuff, but his online postings had a very natural feel and he took the time to share his insights as to what was happening on a chart, not just saying “Here it is”. Liking what I saw, I decided to buy this book.
“Chart Your Way to Profits” is a outstanding in that it presents a wide array of different technical patterns with annotated chart examples in a straight-forward manner by building on concepts from previous chapters as the patterns become more complex. The book covers many of the major patterns a trader needs to know (trendlines, channels, support/resistance, saucers, cup & handle, multiple tops, multiple bottoms, head-and-shoulders & Inverted Head-and-shoulders (very in-depth), Candlesticks, Fibonacci Drawings/Fans/Arcs/Time Zones, and Bollinger Bands). It also is a “how To” guide for investors looking to mark up their own charts.
Tim’s discussion of the psychology of trading patterns is spot-on adds depth to the dry science of charting. If you have read a lot of books on Technical Analysis, then you may not find any new material. However, Chart Your Way to Profits does a better job of knitting the various concepts, tools and patterns into cohesive story (rather than a bunch of one-off patterns) than most of the other books I’ve read. It’s also a solid user manual for the Prophet charting tool, which provided additional value to me as a Prophet user.
Finally, Tim peppers this book with good common-sense trading approaches focused on minimizing risks including his common sense rules of trading. He discusses strategies & patterns for both long and short trades for many types of securities. Definitely my favorite book so far on charting and technical analysis.