This best-selling introduction to technical analysis has been fully updated in its third edition, with new coverage of bubbles, sector rotation and rare “black swan” market events, extra-timely real-world examples, and more.
Technical analysis offers powerful, objective tools for picking stocks and making money--and in today’s market environment, that makes it more indispensable than ever. Unfortunately, most technical analysis books confuse investors instead of enlightening them. In this clear, practical, fully updated book, TradeKing All-Star commentator and Barron’s Online technical analysis columnist Michael N. Kahn introduces proven technical analysis techniques in simple language that any investor can understand and use.
Kahn explains how technical analysis works and then teaches you how to read charts and translate them into investment decisions. You’ll learn how to use technical analysis to complement your current approach to stock selection, discover what makes a stock look promising, and objectively assess both risk and reward. Even when applied exactly as offered - there is no guarantee that the reader will be successful. But owning a high-quality hammer is no guarantee that the user will build a beautiful house, either. The hammer is a tool and in most cases the user will still need other tools - and knowledge - to build that house.
This completely revised third edition contains many new examples reflecting today’s transformed market environment. Kahn offers powerful new insights into the relationship between technical analysis and market psychology and crucial, up-to-date guidance on sector rotation in rapidly changing markets. He also presents a full chapter on navigating through chaotic, once-in-a-millennium, “black-swan” market events. Here are some highlights:
- Why technical analysis works - Bringing real objectivity to investment decision-making
- Chart patterns: See the forest and the trees - Recognizing markets that are changing, need a rest, or are about to take off
- Understand the central importance of price - And what you must know about volume, time, and investor sentiment
- Down the road: A taste of advanced technical analysis - Candlesticks, cycles, Elliott waves, and how to debunk those guys on TV