Technical Analysis: Is Mostly Bullshit - Why Flipping a Coin is a Better Strategy than Using Technical Analysis in the Financial, Stock, and Forex Markets

This got my attention based on the word on front of the book. The author give his opinion about technical analysis and not use it as the main source of trading. And talks about the expensive seminars and courses they sell with there technical analysis. Very good read.

I should by stating that, in my case, he was preaching to the choir. I have been in the financial markets for 40 years and was never persuaded of any value in technical analysis, except for a possible mild effect of what Morris calls the 'self-fulfilling prophecy'.The book is very short and made for an enjoyable read on a train journey.The only criticism I have about the book is its extensive plugging of the author's other books.I did my MBA at a prestigious business school in the 80s. At that time, I suspect that anyone advocating technical analysis would have been thrown out.20 years later, that same school was running courses on technical analysis.That seems to support the author's hypothesis that the best way to make money out of technical analysis is to teach it.

As far as this book is concerned,I will give it 5 stars because it reveals the truth: TA is Bullshit, which is a tall claim but it has truth to it. I don't think it is completely BS - but most of it is absolutely snake oil. It looks fantastic on past charts. What happens tomorrow cant be predicted with confidence.He does not like candlesticks. Yes, Candlesticks are not perfect. Nothing is. But if you apply the MAJOR candlesticks setups at high Bollinger bands,then you can win 65 percent of the time. As long as you cut your losses short and keep positions size small, you should be fine.Kudos to this book. It also guided me to a site where the snake oil salesmen ( purveyors of software, classes and seminars) are exposed. A lot of them have served time in prison for fraud.The message of this book is to trust yourself and not the salesman. I agree with the author.In summary: TA is 80% rubbish, if not all of it.

The truth of the book can be gleaned from the title. If you are falling prey to technical analysis this book might wake you up before it’s too late.But I found the writing way too sloppy for my taste, I was expecting at least some deeper look into some aspects of technical analysis that the author himself calls “plausible” but found nothing more than a couple passing sentences. At least it was a brief read.As someone that has plenty of experience with charts and graphs the theme of the book simply gave voice to what I already knew or at least suspected to be the case, so I have no real problem with the specific details. However, for someone that actually believes in TA the sloppy writing and lack of depth will detract from its utility. And you will find that in other reviews.But, in defense of the author, it is really hard to research and write in depth about a topic that you know for a fact is just BS.

The way I see it, TA is a tool the same way a bow sight is a tool. When the archer points the bow's sight at a stationary target, the likelihood of the archer hitting the bullseye will depend on the level of practice. If the archer misses the bullseye, does that mean the bow sight is useless?The author did an excellent job summarizing a broad range of technical analysis that is available to the traders. When it comes to the author's opinion of TA being negative, I think he has a point if the readers are counting on TA being a magic wand that will guarantee long-term success.My opinion on TA is different from the author because I see TA as a tool the same way an archer uses the bow sight as a tool. Just because the archer failed to hit the bullseye with the bow sight doesn't mean the bow sight is useless. There are other factors involved- factors such as the amount of practice you put in, the adherence to the proper techniques such as correct bow stance, proper grip on both the bow and the string, and proper release. Until the archer masters the principles and techniques of bow shooting, the bow sight is useless for the archer to hit the bullseye.I see the same way with TA. The famous patterns, such as Cup & handle breakout, Head & Shoulder breakout, Fibonacci projection, Elliott Wave Theory, reflects the "potential" trigger point. By pulling the triggers, buy or sell, the ability to be profitable long-term will depend on the traders adhering to other factors such as a trading plan with exit strategies to cut losses or capturing the win. Proper money management techniques are the same as proper techniques in archery.The parallel between the two triggers, TA signals, and bullseye inside the bow sight, has one thing in common. It is challenging to capture gain or hit the bullseye. What separates the expert traders/archers from the average traders/bowman is the level of commitment they put into their crafts.While I can't say TA alone made me a lot of money, but I can tell you that TA helped me to cut losses, or catch a trend more times than I could tell. Once I'm in the trade, money management becomes the number one focus. That is how you make money trading, keeping the losses small, and letting the profit run. Archers attempt to group the arrows near the bullseye as opposed to allowing the arrows to miss the target completely. Allowing the arrows to miss the target completely will be like not cutting your losses quickly.In summary, like learning to fly an airplane (or becoming a successful trader), one needs to put in the hours! TA is only a tool that contributes to the total trading experience. Once the trader realizes the limitations of the TA tool, it becomes invaluable to those who use it. Just like an expert archer who learned the limitations of the bow sight!

This book is a good quick read if you want to get a basic understanding of all the various types of technical analysis. Various financial videos on YouTube show stock charts with technical indicators & talk about technical analysis. Not to mention all the ads that pop up trying to sell you someone's trading method. I had a basic understanding of TA but this book made TA much more clear & understandable without spending long hours reading some thick technical stock trading guide that cost a lot more $$. I also like the examples the author gives of how TA isn't all its professed to be.

O autor é equivocado sobre o assunto. Nota-se que não sabe utilizar as ferramentas da AT, e com o uso errado conclui que não funcionam.

This is a great book that totally debunks the Technical Analysis theory, without any fluff and/or page fillers. You can read it in one sitting, which makes it a good time investment, on top of being a good financial investment (considering the price of the book vs. what you get out of it).However, it only covers half of the facts. The second half is that Fundamental Analysis is also BS!!!Any respectable trader should be familiar with Jack Schwager's Market Wizards series, where one can readily find successful TA trades and successful FA investors; however, it is not their analysis (technical or fundamental) that made them successful. It's their mentality and how they PHYSIOLOGICALLY manage their trades/investments.Analysis is 5% of the equation, money management is 15%, and physiology is 80%.To me, 5% is BS whether it is Technical or Fundamental. To be successful, one needs to focus on the more relevant aspects of trading/investing.(See my other book reviews for great books on trading)

On apprend rien de bien intéressant dans ce (petit) ouvrage qui manque d'argumentation solide. Il suffit de lire le titre et vous avez presque lu le livre. L'auteur se contente d'avancer des intuitions (qui sont probablement vraies) mais sans réel appui chiffré ni démonstration. Il n'est fait mention d'aucune approche permettant de justifier de la significativité statistique ou non des différentes méthodes évoquées, qui me semble être la seule et unique manière de discréditer (si tel est le but) les techniques chartistes. Je ne recommande pas ce livre qui prend plus pour moi la forme d'un coup marketing qu'une synthèse d'un travail sur le sujet (par ailleurs vous trouverez de nombreuses pages de renvoi vers d'autres livres du même auteur, sur des thèmes tous aussi attrayants...)

As someone with a background in both psychology and (to a lesser extent) computer science, I've naturally been drawn to blockchain technology and dabbled in cryptocurrency investing, but I've always been shocked at the quality of most TA and the support it receives. This book does a great job of explaining TA without needless waffling and then clearly points out the various issues with each indicator. I would also add that, not only do we humans have a strong tendency to perceive patterns where there are none, but we also have a very poor understanding of what chance actually looks like. Consider the coinflip chart in this book, which demonstrates that the random flipping of a coin can produce very similar patterns to those we see in the markets: notice the "downtrends" and "uptrends" occuring just by chance. This is in part due to the fact that chance events tend to cluster, so a flip of tails is slightly more likely to be followed by another tails than heads, despite there being an equal base likelihood of each outcome. If interested in the specifics, look up what Steven Pinker wrote about lightning strikes and chance events in the Better Angels of our Nature for a good explanation.

I've read many TA, even in serious web sites and newspapers, and they always made me angry.To me it was obvious that the scientific value of those predictions we're as good as reading birds entrails or coffee grains.This book simply debunks all that bullshit shamanism in an analytic, empirical and logical way.Great 30 min read!