How Technical Analysis Works
$14.20
How Technical Analysis Works by Bruce Kamich is a practical and accessible introduction to one of the most powerful tools in modern trading. Written by Bruce M. Kamich, a respected market technician and educator, this book is designed to demystify technical analysis for traders, investors, and financial professionals at all levels.
Kamich begins with the fascinating history of market charting, from the early pioneers of Dow Theory to the modern era of sophisticated indicators . He carefully contrasts technical and fundamental analysis, making it clear how price and volume data can often reveal market truths that news headlines cannot. The book emphasizes that markets discount all available information and that prices move in trends, a cornerstone concept for anyone seeking to identify opportunities with confidence .
Readers are introduced to the essential building blocks of technical trading: line, bar, point-and-figure, and candlestick charts, along with trendlines, support and resistance, and moving averages . Kamich then progresses into chart patterns such as head-and-shoulders, double and triple tops, triangles, flags, pennants, wedges, saucers, and cup-and-handle setups . Each chapter provides step-by-step guidance, examples, and practical trading strategies that show how to apply these classic formations in real-world markets.
The book also explores the role of momentum oscillators, relative strength, volume indicators, stochastics, and sentiment tools to help traders confirm signals and avoid common traps. Kamich concludes with real-world case studies, offering investment guidelines and trading rules that bring together the entire discipline into a practical trading plan .
More than just a textbook, How Technical Analysis Works is a clear, hands-on guide that balances theory with actionable tactics. Whether you are a new trader searching for a reliable introduction or an experienced investor seeking a refresher, this book provides the knowledge, tools, and mindset needed to read the markets with skill and precision.
Contents:
- HISTORY AND BACKGROUND
- HOW TECHNICAL ANALYSIS DIFFERS FROM FUNDAMENTAL ANALYSIS
- THE ROLE OF CHARTS IN TECHNICAL ANALYSIS
- KEEP YOUR EYE ON THE TREND
- THE KEY BUILDING BLOCKS OF SUPPORT AND RESISTANCE
- PATTERNS TO PROFIT BY
- REVERSALS CAN KEEP YOU ON YOUR TOES
- CONSOLIDATIONS ARE GREAT ENTRY POINTS
- GAPS: WHAT’S NOT THERE IS WHAT’S IMPORTANT
- DRAW YOUR OWN TREND LINES AND CHANNELS
- MOVING AVERAGES SMOOTH THINGS OUT
- USING RELATIVE STRENGTH FOR SELECTION
- GETTlNG CONFIRMATION WITH VOLUME
- THE UPS AND DOWNS OF OSCILLATORS
- WHAT’S SO SPECIAL ABOUT RSI?
- STOCHASTICS
- A FEW LOGICAL INDICATORS TO FOLLOW
- OVERCOMING THE PITFALLS: REAL-WORLD TECHNICAL ANALYSIS
- PUnlNG IT ALL TOGETHER: CASE STUDIES
How Technical Analysis Works By Bruce Kamich pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 304 |
| Publication Year | 2003 |
22 reviews for How Technical Analysis Works
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Annabelle Stevenson (verified owner) –
Beautifully written -easy to read -learned a lot
Frankie French (verified owner) –
This is acutally a very good book, and one of the stronger parts is that the author explains what actually happens during the formation of different patterns. I would give this book 4 stars but the charts are awful – I have NO idea why the author has chosen this format for the charts…
Jovanni Kirby (verified owner) –
Kamich provides a very nicely balanced approach, providing a thorough presentation without becoming an encyclopedia of every obscure technical tool available. The book was written long enough after the 2000 peak that the charts provide both bull and bear examples.
Jaylin Henson (verified owner) –
“Excellent book for the beginner trader as well as a trade which has been around for years.” All areas of importance to technical analysis are covered in very easy to understand language.
Callan Summers (verified owner) –
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!
Dario Santos (verified owner) –
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!
Bellamy Stokes (verified owner) –
Definately provides a good review of many TA approaches and I really like how Kamich inputs his personal commentary on the market psychology represented by the charts. The big weakness of this book is the lame charts. Considering this is a TA book, which is all about charts, one would think there would be good examples… There are not! I found myself drawing many of the charts he described. In my oppinion, he should have provided them.
Seven Thornton (verified owner) –
This book is great for the ‘advanced beginner’ as I’ll call myself. I was at the point that I new what I didn’t know about being a trader. I had my brokerage account opened and funded, had my chart software and data provder purchased and running on my computer and then realized I wanted to start to really understand how to read the charts. So I started with this book and it was perfect. Bruce Kamich will teach you how to really approach the chart without being overwhelmed with data or indimidated by all the complexities that can be there for the novice. His writing is clear and points you in all the right directions. Bottom line – I finally started making money after reading this book. 100% great book!
Joelle Frost (verified owner) –
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.
Sloane O’Connell (verified owner) –
For the low price, you really can’t get a better entry-level TA book. If you’re only looking to add a little TA to your fundamental strategy, or only looking to find out what TA is, this book may suffice. For someone looking to start an in depth study of TA, this is a good starting place. After that I would look at Technical Analysis by Kirkpatrick and Dahlquist. However, for an advanced TA trader this book won’t offer much.
Ayan Berry (verified owner) –
This is an excellent book for beginners and intermediate traders. It explains TA in a deep but simple way. The real value of this book (for me) is that it explains what is happening, who is buying and who is selling during chart patterns. It also explains how to trade each pattern.
After reading this book i feel much more calm and confident about what is actually happening on the markets. I can now have my own ideas of market movements, despite news, newsletters and other bloated sources of information. This book will serve as a reference for years to come.
The section on chart patterns is deep and complete. It contains all needed informations, but keeping a focus on price action.
The section on indicators covers (well) the most common ones. I would have liked more indicators.
Haisley Hill (verified owner) –
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.
Myla Good (verified owner) –
very good book!!!!
is a must reed book for every trader!
the best technical analylisis book out there !
don’t let it go.
Teresa Truong (verified owner) –
Get Jack Schwager’s book instead if you have some knowledge of TA.
Ryann Rojas (verified owner) –
I really liked the book.
Davian Guevara (verified owner) –
Liked that the book went over different types of tools and what situation each tool was good for. Confirmed some of the things I already knew and was doing.
Corey Conway (verified owner) –
Am very lucky to take Prof.Kamich’s course in person. Love books that can question my existing thinking and push me to grow. The book is very concise and informative.
Skyla Stevenson (verified owner) –
This is very basic and if you are starting out, it is good intro to TA. However, you won’t learn subtle play of these indicators and their limitations in helping you do real trading that is profitable. My advise for neophytes is to start with Steve Nison’s “Japanese Candlestick Charting”. Grasp the psychological madhouse that markets are and learn to decipher emotions which are controlling the market participants. There is enough of Western TA in that book to give you a clue as to what is essential to learn and what is mostly mathematical wizardry which leaves you more confused and too paralyzed to act. Develop your system by trial and error and do a lot of chart reading – a lot. the history of movement of the stock prices is there for you free of charge to study. Study markets in bull and bear phases, strongly trending and going-nowhere phases, and any old time frame and most unusual time periods in history (try 1987 or 2005). Learn your own psychological make up and your limitations, how much pain can you endure, how greedy you are and of course, how fragile. Mathematically derived indicators can do only so much; people are not mathematical. People are emotional creatures. No mathematician can replace a psychiatrist to evaluate and treat a schizophrenic patient and market players are if nothing else, definitely schizophrenic, including yourself. Learn smart or you will be chewed up and spit out by the markets.
Alana Schneider (verified owner) –
This book is worth the price and you’ll make it back many times over by using the information in your portfolio.
The book is well written and easy to skip to the parts that interest you at that time.
I recommend reading the entire book and then going back to review and really paying attention to the details, which can increase understanding and your portfolio performance.
I use this as a follow-up to Stan Weinstein’s “How to Profit in Bull and Bear Markets” and “Stikky Stock Charts”.
Good investing!
Colin Le (verified owner) –
I finally read this book 5 years after buying it. It is a good book for a beginner like me. This is because it has a lot of information but is concise and short. Some books are so long that you struggle to finish reading and could be filled with filler materials but not this. My only issue with this book is the charts. At times, you can hardly relate the text to the chart because of a lack of indicators on the chart. Great book nevertheless.
Isaac Rosas (verified owner) –
I would recommend this book as an introduction to TA. The author did a nice job of explaining many of the most relevant oscillators and indicators. He further elaborated on the ideal situational pairings for each. Overall, I really liked this book. The only negative in my opinion is that better charts could have been used to illustrate the points explained. For a book on analysis, I would have expected a better selection and better quality of charts. If you’re looking for a better understanding of TA, this book would be an excellent primer and a great place to start.
Raymond Warren (verified owner) –
Bruce Kamich offers a very pleasing way of writing and explaining things. This book is indeed a must for those who are starting to learn Technical analysis. The charts presented in the book are also clear and easy to read, details of the chart are very visible. unlike most of the Tech Analysis books/trading books ive read (for example: explosive stock trading strategies) wherein the charts presented are blurry, this book is different, a very well edited book. The editing of this book is far superior compared to Wiley trading books,