Average Reviews:
(More customer reviews)This 383-page tome covers technical analysis (TA) from many perspectives. For the investor or trader who is new to TA this book will have to be read a few times so that the critical concepts sink in. It is not the most complete book on the subject, nor the simpliest one to understand, but right in the middle. For those readers with a basic knowledge of the subject who are looking for a review of the key concepts and tools, this book provides an excellent refresher with many detailed charting examples to make the teaching points.
Early on, Stevens very briefly covers the basic types and scaling of charts -- bar, line, candlestick, and point-and-figure. For those readers looking for a detailed discussion of charting, I recommend the following books: Steve Nison's Beyond Candlesticks, and Greg Morris's Candlestick Charting Explained, Tom Dorsey's Point and Figure Charting (John Wiley) and Michael Burke's The Three Point Reversal Method (Chartcraft).
The importance of trendlines -- their rationale and construction -- support and resistance, trading ranges, and retracements are thoroughy covered in a 50-page chapter.
Stevens reviews chart patterns in detail in a 70-page chapter that covers ten reversal patterns (double and triple tops and bottoms; "V" tops and bottoms; round tops and bottoms; head-and-shoulders; rectangles; triangles; wedges; flags and different types of price gaps). Each of these topics is explained using chart examples. All the charts in the book are from the TradeStation platform and they are annotated with key points so that the reader can easily get the point.
Another 70-page chapater entitled "Technical Indicators" focuses on the most commonly used indicators and how to use them in determing the market's direction. The indicators covered include: overbought and oversold; 25 pages on moving averages (simple, weighted, and smoothed) with 9, 14 and 20 days; 21 and 50 day and 200 day; 10 weeks, 20 weeks, and 50 weeks; support and resistance with moving averages; moving average cross-overs and envelopes and Bollinger Bands.
Then he covers oscillators. Topics include rate of change, price oscillator, MACD, RSI and stochastics. Stevens then reviews specialty indicators including advance/decline line, McClellan Oscillator, TRIN, sentiment (call/put ratio, CBOE Volatility Index(VIX), CBOE Nasdaq Index (VXN), new highs/new lows, bellwether stocks and sectors.
Next the author reviews confirmations and divergences between prices and indicators to aid in determining the stock's or market's direction. Many charts are shown with oscillator and price examples so that the reader clearly understands the importance and meaning of divergences and confirmations.
Stevens then covers, in an introductory way, topics not normally included in an introductory book. These include seasonality of stock prices, concepts of W.D. Gann (cycles, Gann charts, angles, and price squares), Elliot Wave Analysis (wave structure and characteristics) and technical trading systems (setting up indicator trading systems and testing them).
In the last chapter, Stevens pulls everything together by providing a ten-item TA checklist fo what to look for by using 20 chart examples to drive home key points. At the back of the book, Stevens provides a recommended reading list for further study, seven websites, trading book sources, charting software and data vendors, and a 15-page glossary with 110 key terms clearly explained.
There are 363 books on TA listed on AMAZON. Stevens book offers a solid background on the tools of TA, and how to interpret the charts and related factors. As such it will aid the investor/trader (who seriously studies the subject matter) to make better informed investing/trading decisions.
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Essential Technical Analysis: Tools and Techniques to Spot Market TrendsAn Introduction to Technical Analysis from One of the Top Names in the Business"Essential Technical Analysis is a highly valued resource for technical traders. The importance of comprehensive and well-researched market behaviors, indicators, and systems were well expressed graphically with many examples. No technical analyst should be without this book. Stevens's book could become another classic." -Suri Duddella, President of siXer.cOm, inc. (Forbes magazine's "Best of the Web" in Technical Analysis Category)"Essential Technical Analysis will give the new student of technical analysis a good overview of both classical chart patterns and a myriad of technical indicators, but so will many other texts. What sets this volume apart is that it presents the subject in the context of real-world trading situations, not idealized well-chosen examples. Books on technical analysis, especially those aimed at novices, are typically filled with charts in which the selected patterns are both unambiguous and work perfectly. As Leigh Stevens recognizes and confronts, however, the real world is a far more sloppy place: charts may often contain conflicting indicators, and patterns don't always work as described. Reading Essential Technical Analysis is like sitting beside a veteran technical analyst and having him describe his methods and market experiences."-Jack Schwager, author of Market Wizards, Stock Market Wizards, and Schwager on Futures"Leigh Stevens's depth of experience, acquired over many years, has generated a deep understanding of, and commitment to, the discipline of technical analysis. He is also one of those rare individuals who have both the ability to convey the essence of his ideas in a wonderfully simple and straightforward way and through the use of personal anecdotes and experiences. There are not many people around who can both walk the walk and talk the talk." -Tony Plummer, author of Forecasting Financial Markets, Director of Rhombus Research Ltd., and former Director of Hambros Bank Ltd. and Hambros Investment Management PLC"Leigh Stevens brings his considerable years of experience to this project. He has crafted a real-world book on technical analysis that gives you the benefit of his trials and errors as well as 120 years of observations and market wisdom from Charles Dow to the latest indicators and approaches. Investors who suffered from the bursting of the technology bubble in 1999 and 2000 should read Essential Technical Analysis from cover to cover and learn to apply the lessons to the next market cycle." -Bruce M. Kamich, CMT, past President of the Market Technicians Association and Adjunct Professor of Finance at Rutgers University and Baruch College
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