Technical Analysis: The Complete Resource for Financial Market Technicians

Technical Analysis by Kirkpatrick and Dahlquist has raised the bar and set the standard for TA books. It's far more advanced than Murphy's Technical Analysis of the Financial Markets, and a much easier read, as well as more scientific, than Pring's Technical Analysis Explained. It consists of 629 pages loaded - I'm talking small type - with brilliant insights on stock analysis and market analysis. The book serves as a guide, a text book on TA, and a myth buster of some of the "pie in the sky" vodoo that tends to distort the image of TA. It tells you - with statistics and scientific research - what's effective, what was never effective and what used to be effective. After already having read several investment books on TA and fundamental analyis and having went to B-School, I still learned both fundamental things and TA things from this book.

This is by far the best book I have read on technical analysis. It is a complete guide to all the different aspects of T/A. The best part of the book and the reason it I give it 5 stars, is the fact that the author has tested all of the indicators himself (and his team), and if he hasn't tested them personally, he list someone who has. He provides you with the success/failure rate of different indicators, what % of the time the stock will rise after say a declining wedge, and how often contrarian trading works to your advantage. If you have not read a book on T/A before, I would recommend reading something like Technical Analysis of the Financial Markets. I think you will get more out of the book if you already have a good knowledge base built up before hand.

The book covers all aspects of technical analysis in detail, and with helpful assessment of the various techniques to help the novice active investor/trader. It is a textbook yet it is written in easily understood language. It could be a resource for a beginner, yet a more advanced investor trader would find plenty of useful information. I highly recommend it.

Charles Kirkpatrick II, CMT, and Julie Dahlquist, Ph.D., the authors, have decades of experience in using and/or teaching technical analysis on the college level. Their subject mastery is apparent in this well-written all-inclusive textbook , which is clearly and logically written. Each chapter builds on the knowledge learned in prior chapters. In addition, there is an extensive 18-page bibliography. This 672-page 23-chapter book is written in a college textbook style. For example, each chapter begins with a handful of objectives, followed by the subject matter including large easy-to-read charts and tables (many created using TradeStation charts and data from Ned Davis Research, Inc.), and ends with a conclusion section, as well as review questions. In the introduction to the subject, the authors review the history of technical analysis, as well as the importance of trends, and the controversy surrounding the validity of the random walk hypothesis and the efficient market hypothesis. Next, the focus is on market indicators (Dow theory, market sentiment, market breadth indicators (ARMS Index, 90% down days, new highs and new lows, and percent of stocks above their 10 and 30 dmas), cycles and patterns, and fund flows into the market. Also reviewed are breakouts, stop placements, retracements, and moving averages. There is an extensive review of chart construction, chart pattern analysis and trend confirmation using bar charts, candlesticks, and point-and-figure charts. Also covered is a discussion on cycles, Elliott wave, Fibonacci and Gann. Furthermore, there is a discussion of trading and investing and market and issue selection. A chapter on system design and testing, and money and risk management provides additional insight into the subject. The knowledge imparted by this book can benefit financial professionals, individual investors, college students; financial journalists who want to learn the key concepts of technical analysis, and other interested parties. In addition, this book can also be used as a study guide for the Certified Market Technician (CMT) designation. This book is substantial in content and a welcome addition to the field. Those wishing to increase their technical analysis knowledge even further, can read books by John Murphy, Greg Morris, Thomas Dorsey, Martin Pring, Steve Nison, and of course the joint work of Robert Edwards and John Magee.

An outstanding book, both for the beginner (I wish it had been around when I started studying technical analysis!) and the experienced technical analyst. After 13 years in the field, I still learnt something. The dual approach theory / practician gives it another dimension many other books are missing. A thorough guide. Highly recommended.