Encyclopedia of Chart Patterns (Wiley Trading) [Hardcover]

Thomas N. Bulkowski (Author)

Book Description

Publication Date: February 3, 2000 | Series: Wiley Trading (Book 90)

Technical chart analysis has never been easy. It has, however, been historically successful-and well worth the added effort-for dedicated investors who want to presage what a stock will do next and regularly beat the markets.

Encyclopedia of Chart Patterns represents the next step in technical analysis. This definitive text details over 50 chart patterns that signal whether a stock is in bullish, bearish, or neutral mode. It identifies each chart pattern, explains how and why each chart was formed, and where it will go next. You simply filter the information through your own trading style and strategy, watch for the optimal entry and exit points, and trade the markets with skill and confidence.

The step-by-step chapters in Encyclopedia of Chart Patterns reveal for each pattern:

Results Snapshot - At-a-glance data on chart appearance, average rise or decline, failure rate, and price prediction accuracy

Tour - Broad introduction to the pattern

Identification Guidelines - Characteristics to look for and why

Focus on Failures - What failed patterns look like, why they failed, and what to do

Statistics - The numbers, and what they tell you

Trading Tactics - Implementation strategies for maximizing profit while minimizing risk

Sample Trade - The chart pattern in action, with hypothetical trades using real data

With the proper knowledge and understanding, chart pattern analysis can be one of today's easiest to use "investing tools". Encyclopedia of Chart Patterns presents the technical analysis tools, then reveals the secrets-such as average failure rates, most likely gain or loss, volume trends, and surprise findings-as you use the tools to build a portfolio of wealth. The result is today's most valuable technical analysis reference, one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top.

Editorial Reviews

Review

"Trading Classic Chart Pattern ist zusammen mit Encyclopedia of Chart Pattern der erste wirkliche Fortschritt seit der Basisarbeit, die von Edwards und Magee vor mehr als 50 Jahren geleistet wurde."
Der Aktive Trader, Nr. 10, Oktober 2002

From the Inside Flap

Technical chart analysis has never been easy. It has, however, been historically successful-and well worth the added effort-for dedicated investors who want to presage what a stock will do next and regularly beat the markets. Encyclopedia of Chart Patterns represents the next step in technical analysis. This definitive text details over 50 chart patterns that signal whether a stock is in bullish, bearish, or neutral mode. It identifies each chart pattern, explains how and why each chart was formed, and where it will go next. You simply filter the information through your own trading style and strategy, watch for the optimal entry and exit points, and trade the markets with skill and confidence. The step-by-step chapters in Encyclopedia of Chart Patterns reveal for each pattern:
* Results Snapshot-At-a-glance data on chart appearance, average rise or decline, failure rate, and price prediction accuracy
* Tour-Broad introduction to the pattern
* Identification Guidelines-Characteristics to look for and why
* Focus on Failures-What failed patterns look like, why they failed, and what to do
* Statistics-The numbers and what they tell you
* Trading Tactics-Implementation strategies for maximizing profit while minimizing risk
* Sample Trade-The chart pattern in action, with hypothetical trades using real data
With the proper knowledge and understanding, chart pattern analysis can be one of today's easiest to use "investing tools." Encyclopedia of Chart Patterns presents the technical analysis tools, then reveals the secrets-such as average failure rates, most likely gain or loss, volume trends, and surprise findings-as you use the tools to build a portfolio of wealth. The result is today's most valuable technical analysis reference-one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top.

See all Editorial Reviews

Product Details

• Hardcover: 688 pages
• Publisher: Wiley; 1 edition (February 3, 2000)
• Language: English
• ISBN-10: 0471295256
• ISBN-13: 978-0471295259
• Product Dimensions: 10.2 x 7.3 x 1.6 inches
• Shipping Weight: 3.2 pounds
• Average Customer Review: 4.1 out of 5 stars  See all reviews (53 customer reviews)
• Amazon Best Sellers Rank: #939,005 in Books (See Top 100 in Books)

More About the Author

Thomas N. Bulkowski is recognized by many as one of the world's leading authorities on chart patterns. He is a successful investor and trader with nearly thirty years of experience trading stocks. He is also the author of the books Encyclopedia of Candlestick Charts; Encyclopedia of Chart Patterns, Second Edition; Trading Classic Chart Patterns; and Getting Started in Chart Patterns. His best selling books have been translated into six languages. One hundred articles of his have been published in Active Trader; Stocks, Futures and Options; The Technical Analyst; Traders'; The Trader's Journal and Technical Analysis of Stocks & Commodities magazines.

Before earning enough from his investments to "retire" from his day job at age thirty-six, Bulkowski was a hardware design engineer at Raytheon, a senior software engineer for Tandy Corporation, and a software manager for Tracor-Westronics.

He was the vice president of membership and later treasurer of the Keller Chamber of Commerce, chairman of the Keller Parks and Recreation board, president of Keep Keller Beautiful, vice president of the Friends of the Keller Library and charter member of the Keller Writers' Association. He also authored the Keller Recycling Task Force report and Park System Study for the City of Keller.

In his spare time, he likes to wander around his back yard looking for toads, spiders, snakes, and other inhabitants and then photograph them, occasionally play guitar while watching birds visit the bath or feeder, putter around in his garden, read and write fiction, and sneak up on his dog.

Customer Reviews

Most Helpful Customer Reviews

103 of 104 people found the following review helpful:

5.0 out of 5 stars Regarding inaccurate statistics, August 24, 2000

By 

Barry Rudd - See all my reviews

This review is from: Encyclopedia of Chart Patterns (Wiley Trading) (Hardcover)

I don't even know Mr. Bulkowski, but I felt compelled to write this review. One particular reviewer points out a few apparent discrepancies in this 672 page volume of research. It does not matter whether you are an author or have been published in trading-related magazines.

The reviewer sarcastically poses that since the "rectangle bottom" stats on page 659 portray a zero faulure rate, that traders can get rich and never lose money!

If you truly read the entire text, including Mr. Bulkowski's opening remarks that define his fresh statistical-analysis approach, then everything falls into place.

Furthermore, the author addresses the "zero loss stat" for the rectangle formation on pages 440 and 444. He states that the "sample size" was small for this pattern and said: "Let me emphasize that because I did not find any failures of rectangle patterns with upside breakouts does not mean there are none."

This is a good and comprehensive book with a very fresh statistical approach for analyzing classic (and newer) bar chart formations. There is a wealth of information addressing each of the many patterns. It is offered up to the reader as copious amounts of quantified data that any trader/investor can draw from to incorporate into his or her own trading.

I too am an author, and I trade stocks full-time for a living. This book is a great resource and fits in the top 15 T.A. books of which I own roughly 300.

Yeah, he called a "dogi" a "hanging man." To me that doesn't detract from the other 671 pages.

Buy it, read it and use it!

82 of 87 people found the following review helpful:

5.0 out of 5 stars A stunning achievement, a classic, September 16, 2000

By 

Animal Lover (CT USA) - See all my reviews

This review is from: Encyclopedia of Chart Patterns (Wiley Trading) (Hardcover)

This book is a must-have for anyone interested in technical analysis, whether just starting out or more experienced. It is a thorough review of patterns not seen since Edwards and Magee (1948) and deserves the name "encyclopedia". The author takes a scientific approach and does not make "claims" for one pattern or another, as a critical reviewer states. He clearly acknowledges that patterns, as with any technical method, only indicate, they do not dictate, and we are always working with probabilities. The back-testing that yields statistics on pattern performance (failure rate, average gain, etc.) is useful, but best of all is the absolutely clear description of the patterns with identification guidelines. Of the 100 or so books on technical analysis on my bookshelf, this is far and away the most-consulted. I have been using statistics-based technical analysis for over 20 years (moving averages, stochastics, and the like), but increasingly see patterns like double tops, triangles, etc. This book is an invaluable adjunct to software-generated statistics-based technical analysis. I am a professional financial writer on technical analysis as well as a money manager.

52 of 54 people found the following review helpful:

5.0 out of 5 stars Most informative review on chart patterns, June 21, 2005

By 

Vincent F. Simione (Glen Cove, NY USA) - See all my reviews
(REAL NAME)   

This review is from: Encyclopedia of Chart Patterns (Wiley Trading) (Hardcover)

I have always wondered - how reliable are chart patterns? Now I know. Tom gives you every statistic necessary to give you the confidence needed to trade these patterns. If you want to know what each pattern should look like, what the average rise or decline is, what the success rate is of each pattern, how to deal with failed patterns and strategies for maximizing profit and minimizing risk - then this 2nd edition is a must.

I have been trading for 25 years and this is the first book I have read that gives me the confidence to take action.

Bravo Tom.

Vince