This is a beginner's guide to Technical Analysis...and do not be fooled by its simplicity.
Many traders get caught up with too many complexities and forget to read the obvious writings on the wall!I particularly like these parts :
(1) Market seasons ( pg 29)
(2) The tools required for Different Market Scenarios ( Direction, Momentum, Volatility ) ( pg 74) .
(3) Patterns and Formation ( Trend Reversal, Consolidation, Candlesticks pattern ) ( pg 50)
And what can I add to enhance the knowledge found in this book?
(1) I prefer to label the market trends as : Up , Down, Sideways
Then Add the Volatility : Volatile, Non-Volatile
Then Add Standard Devaition : Normal 1, Volatile 2, Extreme Volatility 2-5
Hence, my market pulse will have the 3 factors above.
Once identified, i will then proceed to look for the tools to trade.
(2) The tools required. I generally participate in Trending markets ( Up and Down ) only, so I stay out in Sideways (hence , i do not use RSI or Stachastics). I also use the Support / Resistance lines with particular attention to the Slope. I also like Moving Averages, in particular Guppys.
(3) I am a great fan of Patterns. So, I also look our for Continuation, Indecision, Reversal patterns. Breakouts to me can mean Breakout to CONTINUE, and Breakout for REVERSAL. Make sure you can differentiate the two Breakouts.
Conclusion :
This book to me , addresses many problems faced by beginners, in that they are not sufficiently exposed to the BIG PICTURE trading, ie failing to identify firstly, the market pulse and seasons. Winston covered this area well. I suspect many newbies get caught up with too many technical indicators and they get confused easily as indicators are just that, indicators. Perhaps they think that indicators is all , be all to trading. Alas...naked trading with just PRICE action can roll in the money as well!
In the realm of 3M's in trading namely , Method, Money Management, Mind... this book has emphasis on the Method aspect only. Very little emphasis on the other 2 M. For starters, I recommend SUPER TRADER by Dr Van Tharp ( on Money Management) , and TRADING FOR A LIVING ( Dr Alexander Elder ) ( for all 3 M ) , and TRADING in THE ZONE ( Mark Douglas ) for Mind.
You can this book at http://www.profitableta.com/ or at all leading bookstores.
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