Technical Analysis: Power Tools for Active Investors

Gerald uses an easy to read and casual writing style with meaningful insight into technical analysis. He builds your confidence as you work through the book and eventually you become empowered enough to work effectively within the USA equity markets. This book has helped me create my trading system that is producing a successful trading account currently and will allow me to make necessary trading system changes into the future. The years of work outlined in this book along with substantial backtesting create real power tools for investors now and into the future.

To quote Dr. Alexander Elder from the foreward: "The only thing you need to bring to reading this book is a commitement to market work. What you need to succeed is right here, on the table in front of you. It will be curious to see how many people actually take this knowledge and work with it to become successful traders and investors." My experience with the techniques decribed in this book confirm this assertion. From the VIX, to the Moving average trading channel, and the MACD signalling the market bottom. All of the techniques described worked flawlessly in the recent market correction in January of 2008. I guess I have to say thank you Gerald Appel for sharing the insights you have gained over 30+ years of trading. I'm not sure I would have been generous enough to do that. Why would he give away his secrets that he worked so hard to develop? To quote Dr. Elder from the Foreward again: "I recently visited Jerry and asked why he wrote this book. He laughed, "I enjoy seeing my picture on book jackets....It feels good to get your ideas out into the world, leave a little of your imprint around. I have never lost anything by giving ideas away. If people find it useful, it makes me feel good." Trading is hard work. This book is a very good investment but only if your willing to invest the time and effort necessary to learn it and apply it.

In my opinion, the title of this book should be "Topics in Technical Analysis". This book covers some aspects of technical anaysis and each part is very wellwritten. Especially MACD is well covered than any other book in TA. A good source for intermediate and advanced readers.

If longevity is a key to greatness, Gerald Appel has achieved it. When I got into the business in the mid-seventies, he was an admired technical analyst. His publication, Systems and Forecast, was required reading. The inventor of MACD, he has lived to see his technique used by virtually every serious investor and trader; it is included in most trading programs. With Technical Analysis, this accomplished technician and money manager, offers a complete course in forecasting future market behaving using cyclical, trend, momentum and volume signals. His techniques are suitable for investors of all suits - be they short-, intermediate- or long-term. Even mutual fund investors will benefit. It is rare that a successful money manager of Appel's stature shares his secrets with the public. If you are a serious investor or trader, you can only benefit from time spent with this master and his ideas.

For novices interested in technical analysis, there is so much material here it might seem overwhelming. But believe me, the effort at exploration is worth it. I've been successfully applying Appel's work since 1984, and this all-encompassing treatise was like looking over his shoulder, soaking in his 30 years of wisdom on the markets. I was especially interested in the section on the relative strength comparing the performance of the NYSE to the NASDAQ. This area of the book alone is worth the price of admission. Professionals in the field are likely to be familiar with most concepts in the book. But over the years, I've found many misapply the use of MACD, an excellent indicator Appel invented which has become a staple in technical analysis. All would be advised to read how Appel uses his own invention. There's something for everyone in this book, novice and professional alike. Few have contributed more to technical studies and money management than Gerald Appel. Don't just put this on your bookshelf--read it, use it and learn from it. It will make you a better investor and trader.