Trading Classic Chart Patterns
$17.89
| Author(s) | |
|---|---|
| Pages |
451 |
| Format |
|
| Published Date |
2002 |
Trading Classic Chart Patterns includes easy-to-use performance tables, vivid case studies, and a scoring system that makes trading chart patterns simple. This comprehensive guide skillfully gives investors straightforward solutions to profitably trading chart patterns.
Author’s Introduction:
For the most popular and common chart patterns, review the chapter tables for a score, then total the scores. Scores above zero mean performance is likely to beat the median; scores below zero mean you should probably look elsewhere Do not consider the scoring system as a robust, mechanical trading system, but more as an investment checklist. The method is not foolproof to be sure, but I am very pleased with out-of-sample tests and actual trades I have made using the system. I detail several in this book.
Chart patterns work for me. I began trading stocks more than 20 years ago, and now that is all I do—that is, except for the odd book, magazine article, puttering in the garden, playing my guitar, bird watching, and, well, you get the idea. If you are new to chart patterns, technical analysis, or to stock market investing itself, have no fear. The first part of this book presents new research on trendlines, support and resistance, placing stops, selling considerations, and common trading mistakes. Part Two is where you find the warp engines that propel the book deeper into uncharted territory.
I discuss the most common and popular chart patterns, provide the scoring system details for each pattern, and showcase the results. Consider Part Two as a reference section: alphabetically arranged chapters with plenty of easy-to-understand and easy-to-use tables with lots of pictures! Think of this book not as advocating a trading system, but as a system to select better performing chart patterns. Do additional research as necessary, because how you trade your selections is up to you.
Contents:
- Down Trendlines
- Up Trendlines
- Support and Resistance
- Stops, Bats, and Selling
- Common Trading Mistakes
- Broadening Tops
- Diamonds
- Double Tops & Bottoms
- Head-and-Shoulders
- Scallops
- Triangles
- Triple Tops * Bottoms
Trading Classic Chart Patterns By Thomas N. Bulkowski pdf
19 reviews for Trading Classic Chart Patterns
Clear filtersOnly logged in customers who have purchased this product may leave a review.
Esmeralda Hudson (verified owner) –
I’m a software developer writting a program to do chart patterns. I used his first book, but there were conceptual pieces missing. This book fills in the gaps and more. This is an excellent buy and well worth the money! If you are serious about Chart Patterns, then I would suggest this book as a first read and then the encyclopedia of Chart Patterns as a reference. Good humor in the book as well. I like that.
Irene Newton (verified owner) –
This is book two in the series – just behind “getting started in chart patterns.” Once you have digested the first, this one will give you the finer points of identifying potential trades, including often the whys and why nots.
Bryson Davenport (verified owner) –
I wrote the book for novice investors with useful information for the seasoned pro. The Getting Started section explores Trendlines (including internal trendlines and tails, point spacing, number of touches, length, angle, volume), backed up by performance statistics for each; Support and Resistance (round number, moving average, chart pattern, trendline, old high/old low, horizontal consolidation region, including price prediction); Stops (various types including beta-adjusted trailing stops); and common trading mistakes.
Chart pattern reference section: Each chapter examines one pattern type and describes the chart pattern as it behaves under various conditions. I score performance in easy to use and understand tables. For example: Diamonds with downward breakouts occurring in small cap stocks have declines averaging 27% (score: +1), mid caps decline 23% (score: +1), and large caps decline 19% (score: -1). If the diamond chart pattern you’re looking at is in a mid cap stock, then it scores +1. Continue scoring your chart pattern using the other eight tables and total the scores.
Totals above zero suggest performance above the median; totals below zero suggest underperformance. Patterns with totals greater than zero typically perform two to three times better than those scoring less than zero. No guarantees, but the method tends to highlight stock chart patterns that will do well and discards those that won’t. Think of the scoring method as another checklist to consult before trading, not as a trading system replacement, so you can continue using the investment tools most comfortable to you.
Case studies in each chapter walk you through applying the method to your chart pattern and discuss actual trades I made, where possible.
Statistics Summary and Analysis at the end of the book compares the performance results in sixteen tables for both bullish and bearish chart patterns.
Glossary and Methodology defines terms and statistical methods so you can reproduce the results yourself.
There is almost no overlap between this book and my prior one, “Encyclopedia of Chart Patterns”….
Allyson Stark (verified owner) –
This 450-page ebook is authored by Thomas Bulkowski, a successful full-time investor and trader for over 20 years. In his spare time, he previously penned the Encyclopedia of Chart Patterns (2000). For those investors and traders who want to know the performance characteristics of specific popular chart patterns, this book provides the nuts-and-bolts.
The book is not light reading and requires a great deal of concentration if you expect to get the most out of it. If you are beginning investor or trader then you may want to wait a bit until you’ve mastered you chart patterns and terminology before delving into this book. If you like statistical data and like to work with numbers, then this book will make you happy. Each chapter on the chart patterns follow a similar template so that you know what to expect in future chapters as far as format is concerned.
The book is divided into two parts. Part I (85 pages) presents new research on trendlines, support and resistance, placing stops, selling considerations, and common trading mistakes. Part II (about 300 pages) reviews in detail 14 chart patterns (market tops and bottoms, head-and-shoulders, rectangles, triangles and scallops – rounded bottoms). Bulkowski also provided a 19-page summary of the bullish and bearish patterns with their performance statistics. Also included is a 9-page glossary and the methodology used to determine the statistics for each pattern.
To give you flavor as to one of Bulkowski’s findings, consider the most bullish trading patterns. He found the best performance was the descending triangle pattern with an upside breakout. He found the average rise after the breakout for a short-term pattern was 49%. The next best was breakouts from an intermediate-term rectangle pattern with a 42% average rise. And long-term triple bottoms can in third with a return of 41% after breaking out
He looked at the most popular patterns and found the characteristics that make them tick.
Bulkowski developed a chart pattern scoring system that helps select better performing chart patterns to trade. Scores above zero infer that the pattern will most likely beat the median, while scores below the median infer that the pattern will be a non-performer. Bulkowski also includes a few case studies for each pattern to aid in the understanding of the patterns and scoring system.
Bulkowski suggests that you use the information in the book on the behavior of chart patterns with the scoring system, combined with your own research (such as how the industry group is behaving) and other technical and fundamental indicators to develop your own trading strategy.
Overall, Bulkowski presents a masterful text on the most-often used chart patterns. But instead of giving you generalities, he provides specifics based upon detailed statistical analysis. Knowing which patterns work best under which conditions will certainly put the odds of investment success in your favor. Therefore, I highly recommend this book to serious students of the market. This is money well-spent.
Santino Baldwin (verified owner) –
The Master of Technical Charting
Charlie Combs (verified owner) –
Good book for a day trading
Talia Hansen (verified owner) –
thomas bulkowski is a god
Mariana Klein (verified owner) –
Good Book
Kai Barnett (verified owner) –
I love this book. Especially in part one, it lists common trading mistakes. I think this book is very valuable for technically oriebted investors.
Peter Vincent (verified owner) –
I have purchased other books by this author. I think that this one will help me analyze my trades that I do usisng chart patterns.
Vera Lara (verified owner) –
Good info, but considering the prices of his books, I’d recommend getting his latest book first. It includes some things not in this edition. If you want or need more clarification, go back to his earlier books, if you find it necessary. You may or may not. A classic author on chart patterns and chart trading and I have learned much from him, you may want to also check out his website.
Adrianna Barton (verified owner) –
This guy will teach you that a symmetrical triangle has three prognosis:
1. up;
2. down;
3. maintain in congestion.
Even though it is a very nice pattern and is headed to a rise. Which means: do your homework, pick the stock, but protect yourself and expect for everything…
Gabriela Romero (verified owner) –
Not sure if works
Sage McCall (verified owner) –
I read several TA books trying to explain the market partipicants’ thoughts while investing in financial markets by looking at price patterns. Yet these approches seem somewhat fictious and boring to me all the time. I guess the best is to leave this subject to statistical analysis of chart patterns as in this book. This is the best book in TA if you agree with this viewpoint
Marco Burke (verified owner) –
Wow!
I thought that Encyclopedia of Chart Patterns was all that is needed for chart pattern investing, but this book raises the bar by clearly showing how to select patterns in a manner that will increase your returns. This book will pay for itself in just a few trades.
Paisleigh Garner (verified owner) –
If your into technical analysis and even if your not this is a must have book. Learn how to make profitable trades by studying the patterns Tom shows you. This book covers so much that it is one that you will keep on your desk to refer to constantly. I appreciate what Tom Bulkowski has done to help me in my trader and can recommend this book with out hesitation.
Kristopher Hopkins (verified owner) –
“Trading Classic Chart Patterns” by Thomas N. Bulkowski is an informative and practical guide to mastering classic chart patterns in the stock market. The book provides detailed explanations and analysis of chart patterns, accompanied by a unique chart pattern scoring system developed by the author. Bulkowski’s writing style is clear and concise, making it easy for readers to follow along and understand complex concepts. The key concepts explained in the book include trendlines, price gaps, head-and-shoulders pattern, and many more. The book’s effectiveness in teaching the subject matter is excellent, as it provides both theoretical and practical knowledge, with many examples and case studies to illustrate the concepts. The book’s unique aspect is the author’s chart pattern scoring system, which helps traders identify high-probability trading opportunities. The author’s specific explanations and examples of chart patterns were particularly helpful. However, the book could be improved with more in-depth coverage of risk management and trading psychology. Overall, traders who are interested in mastering classic chart patterns will benefit greatly from reading this book.
Cassius Villa (verified owner) –
Bulkowski’s books are the best and you cant go wrong with any of them.
Thomas is a genious and puts his knowledge in your hands with his books.
You will learn how to do the stuff the trading pros do if you read his books.
I have all 9 of his books.
This book provides SPECIFIC steps on how to trade each chart pattern and is written in laymans terms.
Rene Booth (verified owner) –
The money this knowledge made me paid this book many times! I started to make money after I applied this knowledge.
This is an excellent buy and well worth the money! If you really want to have success in trading patterns, then I would suggest this book as a first read.
This is the only book I read so far that explains patterns with supporting data and studies, not just someone that saw a couple of patterns, read other books and decided to write.
He shows what patterns work best, but you also have to decide what patterns work best for you. I’m not comfortable trading scallops so I don’t trade them even though they have good odd of success. I do better with rectangles, triangles and head and shoulders.
I appreciate what Tom has done to help me become a better trader. I recommend this book without hesitation. Also check his website for additional information.