Getting Started in Chart Patterns

I thought this book is a skimmed version of the author's more expensive and extensive book "Trading Classic Chart Patterns". Yet whatever is the reason, the author invents a fictional character "Jake Murphy" to conversate throughout this book. This character really disconcentrate the reader through the content of the book. If you want to suffer peeling off "Jake" while reading this book for sake of saving a few dollars, go ahead and buy this book. If not, the book "Trading Classic Chart Patterns" is a much better choice for a few dollars more and it is "Jake free", it seems.

I have been interested in stock market trading for a long time. Mr. Bulkowski is the first author I have encountered who is extremely realistic about the risks involved in trading. He is frank about the reality that you will most likely lose money in trading. I appreciate that honesty. That said, he gives one tools about how to maximize profits and minimize losses, so that one can come out ahead overall. This is an extremely readable book, artfully crafted with his fictional character to keep the reader engaged while learning important points about trading. This is a very helpful book to one who is beginning, yet is a book for advanced traders to keep close for constant reference. I have read it cover to cover, and still refer to it frequently. I have found very useful information on Mr. Bulkowski's website, to which another reviewer refers. That review spoke volumes about his website, so there is no need to expound further on it here.

Tom Bulkowski is the Man! As a novice, I found Bulkowski's rules of acquisition and disposition to be clear and concise. Chapter 11 "The Art of Trading - Checklists" is a reference bible that you can use religiously before trading. This book holds a wealth of knowledge for the beginner. I can't pretend to go in depth more than reviewer Mark Dankowski or Daniel J. Grill did. But, I would like to mention the one thing that they did not mention When I first started reading the book I was looking at dozens of charts online in an effort to see the patterns that Tom refers to. During the first three days in reading his book I was actually using my bookmarker to trace trend lines on my notebook screen. Then I remembered reading that Tom has a web site listed in the Acknowledgements section at the beginning of the book. I never thought to go to the web site until the pain of holding my bookmarker kicked in. Tom's web site offers a bevy of informational bonanzas. Bonanza number one: Patternz This is FREE Chart Pattern Recognition Software. Put the bookmarker down and download historical prices free from Yahoo finance and Patternz will display the chart plus all of the chart patterns of your choosing. WOW! This software is worth ten times the price of the book. I paid retail. $19.95. Bonanza number two: Patterns, patterns, and more patterns to study. Bonanza number three: Pattern Rankings, based on percentage of success. Bonanza number four: Trading Help: Rules of acquisition & disposition. Measure rule. Bonanza number five: Join the Quiz! This is a self help test of your skills. Tom emails you a chart to see if you can identify all of the patterns therein. Are you seeing all of the patterns that Tom sees? This is a measure of how ready you are to start trading for real. Bonanza number six: Stop placements. Rules on where to place them. Bonanza number seven: Trading Spreadsheet. Keeping track of your successes and failures. Bonanza number eight: Definitions of terms. Bonanza number nine: Studies in trading. Plus, many more. Bulkowski's "Encyclopedia of Chart Patterns" is the next must buy.

Price of the financial instruments exists in two states: dynamic up or down move ( trend ) or congestion ( more or less horizontal move ). Chart patterns are nothing but these congested areas. Patterns start where trend ends. Unlike other TA tools, chart patterns contain information. But to be able to derive it from the pattern you need to be able to read them. This book is a nice introduction on the patterns from the World-class expert in the field. I gave this book five stars because no more stars are available. Otherwise I would give it ten or twenty. Why would I buy this book? First off, this is a cheap way of learning about the chart patterns from the expert. Secondly, the book presents very nice section on failing patterns ( busted ). Thirdly, while there is some literature out there on the patterns, I believe Tom Bulkowski was the first in the history of TA who actually conducted so thorough research on pattern performance. Bulkowski won't give you some B.S. promises about you becoming millioner overnight. The book provides realistic account on the dangers associated with trading patterns. But he also provides you with tools. If you are interested in trading in stocks I really do not see how you can get by without this volume. I would certainly buy it. Ten or so buck you going to spend on it will turn into thousands if you are attentive enough to what Tom says in the book.