Customer Reviews

Chart Patterns (Bloomberg Market Essentials: Technical Analysis) (Bloomberg Financial)

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3 star:		(2)
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1 star:		(1)

 

 

This is a well written, edited, and organized book on a subject close to advanced investors and active traders. The author focuses on the principal chart patterns that, having stood the test of time, predominate, and whose analysis can be rewarding. It is not an encyclopedia of chart patterns.

The author documents some of the historical background surrounding the use of chart patterns, an element that shows the author's indepth level of research in this subject. Each pattern is described and explained with excellent examples, and references are provided for those interested in further study.

The book is not the heavy, lengthy tome that often characterizes this subject. The writing is first class adding to its educational value and distinguishing it from the hard reading that often marks technical analysis. It is an excellent source to have in one's library.

A rather thin book on different patters found in the bar chart (e.g. head and shoulder, triangles) using daily charts. This is classic territory, since the bar chart ruled the world before the candlesticks entered in the 90s. The patterns can naturally also be applied to candlesticks.

As a description of the standard patterns this book is as good as any, but since the patters have been described in very similar fashion for at least 50 years, I expected something more from this book. I would have liked (1) a description of why the patterns happens, (2) an insightful understanding of what has changed over time, or (3) a discussion of intraday charts. Maybe it wouldn't fit with the book's objective to deal with 5 min charts, but hourly charts should definitely have been covered. He states that he isn't really familiar with intra-day charts. I'd say it's time to learn!

I don't get the feeling that the author really "lives the markets". The book feels very mechanical and there is no passion in the author's voice. The author doesn't try to probe deeper by adding something novel in his book. He seems perfectly happy writing a book that could have been written 50 years ago. Out of the four people that recommend the book on the back cover, two are also thanked for their contribution to the book. It would have been much smarter to solicit reviews from people that were not involved in providing support to the author.

Alternatives?
The classic book on chart patterns is Technical Analysis of Stock Trends by Robert D. Edwards and John Magee. The latest version book is really too thick and I would advice to get an edition prior to the mid 1980s. (That's right - very old!). I find the latest editions really too wordy and messy. The old editions are also too wordy, but less so. In addition the old editions (at least the early 80s edition) are also beautifully bound - something that looks good in your bookshelf. That cannot be said about the latest ugly version.

I would also buy Brandt's "Diary of a professional commodity trader" (sorry product link does not work), which contains kind of a running commentary of which patterns are still useful, etc. Brandt considers himself an Edwards & Magee follower, but he also states that traditional chart patterns are no longer as valid in the past. More discussion on the topic throughout Brandt's book.

This is just a generic overview of chart patterns. The information in the book does talk about more recent events such as the Lehman collapse and the recession of 2008. For just about every chart there are 3 pages of long-winded explanations. The author doesnt bring up any new ideas or patterns. Most of the information can be found for free over at investopedia if you are willing to do a little digging.

I did not find anything new than what is already available in the market.
For short term investors I would recommend "24 Essential Lessions" by Bill O' Neil. Bloomberg Press does not seem to produce quality materials.

Kamish wrote an interesting book and his chart reading is ok.
But in order to learn how to trade well you need a lot more and this is why i often recommend the books of Toby Crabel or Linda Raschke which actually may be out of print at this point. Both are real traders, and hedge fund managers. Kamish works for a big investment firm, so he is very constraint in how far he goes out to share his real secrets and i often feel he shares one side of the story while we never get to hear the other. Overall, good book. Still, check on Ebay or Amazon Crabel's books for more full education on the topic.

This book clearly shows Professor Kamich's mastery of the subject. I must say I am privileged to have him as a professor of finance at Baruch College at the City University of New York. Prof. Kamich's pragmatism is apparent in choosing the size of the book. The book is what the French call "Tout cuit". A very small size and thin book which could be carried easily anywhere but yet has everything one needs to learn about chart patterns.
The work produced by Prof. Kamich in this book testifies to the experience accumulated from different scholar accomplishments (book written) and multiple responsible positions held (Vice President at Morgan Stanley Smith Barney's Technical analysis Group and coauthors their flagship publication the Daily Technical Market Leader etc......). The book consists of thirteen chapters which begins by Why Study Patterns and ends with The Future of Chart Patterns which is a complete package of charts patterns. Throughout the book I can see again and again how sharp, precise coherent the author is and reminds me the man I have known in class. Remember one thing the author has been working on chart patterns since the late sixties.

I am fortunate enough to receive 3 emails a day on average from Bruce's co-authored daily technical market letter which I receive by being a VP at Morgan Stanley Smith Barney. I love his book and feel people who invest should purchase it. Bruce has had an excellent track record in real world implementation of his chart reading and interpretation. I have made clients some great trades by following Bruce's calls. People who read this would help themselves if they open an account with a rep who follows and understands him, I highly recommend this book.