The art and science of technical analysis
"A breakthrough trading book that provides powerful insights on profitable technical patterns and strategiesThe Art and Science of Technical Analysis is a groundbreaking work that bridges the gaps between the academic view of markets, technical analysis, and profitable trading. The book explores why randomness prevails in markets most, but not all, of the time and how technical analysis can be used to capture statistically validated patterns in certain types of market conditions. The belief of the book is that buying and selling pressure causes patterns in prices, but that these technical patterns are only effective in the presence of true buying/selling imbalance.The Art and Science of Technical Analysis is supported by extensive statistical analysis of the markets, which will debunk some tools and patterns such as Fibonacci analysis, and endorse other tools and trade setups. In addition, this reliable resource discusses trader psychology and trader learning curves based on the author's extensive experience as a trader and trainer of traders.
Stats for nerds
2recommend
3mentions
3people
2018–2022years
67% recommend33% neutral
Mentions per year
What Hacker News says
- a few months I was very interested in trading and found that one of the best places to learn was with books.
Regarding to books tho, maybe look for books that have been around for a while, instead of a get-rich-quickly random ebook online.
My focus was technical trading, which at the end is learning how to read the sentiment of the market (tons of people selling out and the price plummeting, or tons of people buying and the price increasing).
There's also fundamental trading, which has to do with learning about the company and if it's currently (under/over)valued and trading accordingly.
Whatever you do, spend time learning the language, learning to use stock screeners, understanding why price change, market makers, etc...
there's a lot of specific vocabulary and investiopedia is your friend in that regard.
A book that I particularly liked was "The Art and Science of Technical Analysis" by Adam Grimes
There was another that I can't remember the name right now, but it was mostly about the psychology of the market, i.e. there are tons of people looking at the same graph that you are looking, and they all are trying to predict the future in order to make money... so, mob mentality in a graph!
As with everything, be careful, don't invest anything you can't afford to lose and I'm not a financial advisor and all the disclaimers...
Good luck with this!
- Yes - The Art and Science of Technical Analysis by Adam Grimes is fantastic.
Typically these kinds of books take one of two extremes:
1. Markets are psychology and TA patterns will unlock profits
OR
2. Markets are mathematics and algorithms will unlock profits
Books in #1 will tell you all about Ichimoku clouds, fibonacci levels, fractal patterns, and how to read tea leaves.
Books in #2 tend to ignore the (real) psychological aspects of trading and don't give you much edge beyond a random walk.
Grimes book holds a special place in this dynamic: He discusses price action as psychology, but applies statistical tests to common trader folklore.
As a programmer and beginning trader/quant, Grimes book was exactly what I was looking for.
- Thanks, had not heard of The Art and Science of Technical Analysis, will definitely check it out. I read Intelligent Investor, but kind of felt it lacking, because I didn't feel like it went low-level enough. I also have Security Analysis by Ben Graham, but have never gone through it. Any thoughts on that?
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