Encyclopedia of Chart Patterns, 2nd Edition (Wiley Trading)

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This broadened and revised Third Edition offers investors the most comprehensive, up-to-date guide to this popular method of market analysis. There is however much useful information here for those who have the patience and knowledge to sort the wheat from the chaff. Encyclopedia of Chart Patterns, Third Edition expands upon Bulkowski's immensely popular Second Edition with fully revised and updated material on chart patterns.

Within the pages of this book, you ll learn how to identify chart patterns, supported by easy-to-understand performance statistics describing how well a pattern works, what the failure rate is, and what special quirks suggest better future performance. Though I have not checked the validity just yet, either way, this book is a great leap forward into a proper quantitative basis in the securities markets. Bulkowski is clearly a serious trader who has made groundbreaking statistical investigation of both charts and candlesticks a key part of his trading. is a valuable contribution to the existing literature on charting and should be considered an indispensable reference by any serious chart trader. A lot of work has gone into this book and it could have been a really useful guide to assessing the merits of different patterns for trading purposes.Pattern recognition is crucial, and knowing which patterns work best, and under what conditions is essential knowledge. It would just be a bit nicer to have quick access to the most important information in validating the pattern like the average formation length, rather than rooting through 4 or 5 pages each time. To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. The key difference between this and other chart pattern books is that the findings are supported by empirical testing -they are not just someone's opinion.

By using the Web site, you confirm that you have read, understood, and agreed to be bound by the Terms and Conditions. The Encyclopedia of Chart Patterns, Third Edition further solidifies the reputation of this book as the leading reference on chart patterns, setting it far above the competition. It puts you in the passengers seat so you can share lessons learned from Bulkowski's trades This edition reports on statistics from nearly four times the number of samples used in the Second Edition and ten times the number in the First Edition The Encyclopedia of Chart Patterns, Third Edition further solidifies the reputation of this book as the leading reference on chart patterns, setting it far above the competition. I've gone ahead and created my own, but standardized, ready reference cheat sheets would be a great additional resource. I think this is one of the most comprensive books in chart patterns I ever read, I believe it is important to study this book as it helps me to analyze the chart patterns far better than other book.

Though the book uses statistical information, there are various chart patterns which simply do not have the proper sample size to use the stats for calculation.