Technical analysis, a subject revered by many and reviled by some, involves the skill of interpreting price movements to gain insights into market behavior and discover potential trading opportunities. In this user-friendly guide, Jack Schwager, a highly recognized and esteemed figure in the field, demystifies technical analysis for novice investors. He adeptly explains fundamental concepts such as trends, trading ranges, chart patterns, stops, entry and exit strategies, and pyramiding approaches.
This comprehensive book is filled with numerous real-world examples and clear, straightforward explanations, providing readers with a strong foundation for applying technical analysis to enhance their investment decisions. Moreover, it serves as a basis for developing mechanical trading systems. Alongside Schwager’s invaluable trading rules and market insights drawn from extensive trading experience, “Getting Started in Technical Analysis” covers the following topics in-depth:
1. Types of charts, including bar charts, close-only charts, point-and-figure charts, and candlestick charts.
2. Chart patterns, encompassing one-day patterns, continuation patterns, top and bottom formations, and the significance of failed signals.
3. Trading systems, such as trend-following systems, counter-trend systems, and pattern recognition systems.
4. Charting and analysis software, addressing price data issues, time frame and trading style considerations, and conducting software research.
5. The planned trading approach, which involves defining a trading philosophy, selecting markets, implementing risk control strategies, and establishing a systematic trading routine.
By the end of this book, readers will be equipped with the knowledge and confidence to navigate technical analysis effectively, enabling them to make better-informed investment decisions and develop their own successful trading strategies. Jack Schwager’s expertise and insights make this guide an invaluable resource for anyone looking to harness the power of technical analysis in their trading journey.
