Trading Classic Chart Patterns

Hardcover

ISBN 10: 0471435759 ISBN 13: 9780471435754

Publisher: Wiley, 2002

Use popular chart patterns profitably
In his follow-up to the well-received Encyclopedia of Chart Patterns, Thomas Bulkowski gives traders a practical game plan to capitalize on established chart patterns. Written for the novice investor but with techniques for the professional, 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. Trading Classic Chart Patterns also serves as a handy reference guide for favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and double and triple bottoms. Filled with numerous techniques, strategies, and insights, Trading Classic Chart Patterns fits perfectly into any pattern trader's arsenal.

Thomas N. Bulkowski (Keller, TX), an active investor since 1981, is the author of the highly acclaimed Encyclopedia of Chart Patterns (Wiley: 0471295256) as well as numerous articles for Technical Analysis of Stocks & Commodities. Trained as a computer engineer, Bulkowski worked for over a decade at Tandy Corporation. Prior to that, he worked on the Patriot air defense system for Raytheon.

New technology and the advent of around the clock trading have opened the floodgates to both foreign and domestic markets. Traders need the wisdom of industry veterans and the vision of innovators in today's volatile financial marketplace. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

From the Inside Flap:

From the author of the Encyclopedia of Chart Patterns comes his latest work, Trading Classic Chart Patterns, a groundbreaking primer on how to trade the most popular stock patterns. Written for the novice investor but containing techniques for the seasoned professional, this comprehensive guide includes easy-to-use performance tables supported by statistical research. By using a simple scoring system, you'll learn how to predict the performance of a chart pattern almost by looking at it.

If you're new to chart patterns, technical analysis, or to stock market investing itself, the "Getting Started" section provides new ideas on trendlines, support and resistance, placing stops, and avoiding common investment mistakes. As your trading knowledge and experience increase, the "Trading Classic Chart Patterns" section will serve as a handy reference guide for your favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and triple tops and bottoms. You'll quickly learn about the Adam-and-Eve combinations of double tops and bottoms, and how to select the best performers while avoiding the losers.

You'll discover:
* How to use the price trend leading to a chart pattern as a gauge of future performance
* Why breakout gaps often improve performance-but by less than you think
* How tall formations perform substantially better than short ones
* What a partial decline is and how to buy in early for a larger profit
* Whether high breakout volume really improves performance
* How to identify horizontal consolidation regions that may stop prices dead in their tracks
* A new tool, called the horizon failure rate, to assess performance over time

The scoring system makes trading chart patterns simple. Use the performance tables to score your stock pattern, then add up the scores. If they total above zero, the stock is an investment candidate; if they are below zero, you'll know to avoid that particular stock. It's that easy!

Trading Classic Chart Patterns is a trader's reference that's destined to become a classic. This book is an invaluable resource that provides the obvious answer-Yes!-for every investor who has wondered if trading chart patterns can be profitable.

From the Back Cover:

A practical solution for profitably using popular chart patterns

In his follow-up to the well-received Encyclopedia of Chart Patterns, Thomas Bulkowski gives you a practical game plan to capitalize on established chart patterns. Written for the novice investor but with techniques for the professional, 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 you straightforward solutions to profitably implementing chart patterns.

"No one-not even the pioneers of technical analysis like Dow, Schabacker, Edwards, and Magee-has ever published such in-depth and objective research on chart patterns as Thomas Bulkowski has in his Encyclopedia of Chart Patterns and his new book, Trading Classic Chart Patterns. Bulkowski sees farther, not only because he stands on the shoulders of those giants, but also because he has the creativity necessary to develop new methods of quantifying the performance of chart patterns and the tenacity required to carry out the laborious research. Highly recommended!"
-Thomas A. Bierovic, author, Playing for Keeps in Stocks & Futures: Three Top Trading Strategies That Consistently Beat the Markets

Trading Classic Chart Patterns also serves as a handy reference guide for favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and bottoms. Filled with numerous techniques, strategies, and insights, Trading Classic Chart Patterns fits perfectly into any pattern trader's arsenal.