The Psychology of Technical Analysis: Profiting From Crowd Behavior and the Dynamics of Price [Hardcover]

Tony Plummer (Author)

Book Description

Publication Date: September 1, 1993

This book explains how emotions drive the financial markets and demonstrates how technical indicators can be used to forecast market turning points. This edition includes a trading system and provides practical advice on how to profit from changes in crowd psychology. Specific topics include: The "logic" of the crowd; Techniques for forecasting crowd behavior; The mathematical basis of price movements; Price patterns at turning points; The mechanics of trading success.

Product Details

• Hardcover: 275 pages
• Publisher: McGraw-Hill Trade; Rev Sub edition (September 1, 1993)
• Language: English
• ISBN-10: 1557385432
• ISBN-13: 978-1557385437
• Product Dimensions: 10 x 7 x 0.9 inches
• Shipping Weight: 1.8 pounds
• Average Customer Review: 3.7 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #1,198,796 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

36 of 36 people found the following review helpful:

5.0 out of 5 stars The Most Revealing Modern Book on Mass Psychology of Markets, October 12, 1999

By 

Dr Alexander Elder - See all my reviews

This review is from: The Psychology of Technical Analysis: Profiting From Crowd Behavior and the Dynamics of Price (Hardcover)

Tony Plummer's recent visit to New York and his speech at the Princeton Club had prompted me to reread his book. In his quiet, understated, very British way, but with a tremendous clarity and style this professional money manager reveals mass psychology is behind market moves. If the markets drive you crazy with their seemingly irrational swings, read this book to see the logic behind disorder. Tony Plummer illuminates market movements for you in a way that will impact your understanding for as long as you trade. Then he shares some of his analytic techniques. This book belongs on the desk of every serious technical analyst and trader! MAKE SURE you get the latest edition - Forecasting Financial Markets, published in 1998. For some reason, the three editions of his book have been published by three different publishers under different titles (marketing geniuses!!!) who continue to sell their outdated editions. So make sure to get the latest one!

9 of 9 people found the following review helpful:

5.0 out of 5 stars Efficient market or the herd behavior?, January 20, 2002

By 

Tuncer Sengoz (Istanbul Turkey) - See all my reviews

This review is from: The Psychology of Technical Analysis: Profiting From Crowd Behavior and the Dynamics of Price (Hardcover)

Everyday, reporters and analysts produce dozens of reports about the markets and they try to forecast what will happen next. Most of the time, analyst forecasts are wrong. Market action is in the unexpected direction. The reason why the analysts are often wrong is that they use efficient market hypothesis as a method to forecast the market action. Is the market really efficient and individuals behave rationally or the herd psychology is the main reason of the price action which is following certain patterns?

Read this book.

Mr. Plummer's book handles the problem as a psychological phenomen and examines the dynamics of crowd behaviour. This book clearly describes how financial crowds integrate and disintegrate. Every crowd has a life cycle and in this cycle, the growth, maturity and decline periods follow each other. Mathematical model of the formation and disintegration periods of the bull and bear crowd life cycles, is the Fibonacci number series and this book explains the connections between the growth and decline periods.

Mr Plummer further explains Logarithmic spiral and golden ratio in detail and how they can be used to forecast the future market movements.

This book is a must-read for the financial professionals and the traders.

5 of 6 people found the following review helpful:

5.0 out of 5 stars The market Lives, May 22, 2000

By 

B. L. (Florida) - See all my reviews

This review is from: The Psychology of Technical Analysis: Profiting From Crowd Behavior and the Dynamics of Price (Hardcover)

Tony Plummer did a great job in helping me understand thisliving, breathing, and ever changing organism, the crowd/market;brevity and clairty and beautiful presentation; this book will never be outdated.

B. L.