Customer Reviews

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

5 star:		(5)
4 star:		(1)
3 star:		(0)
2 star:		(1)
1 star:		(2)

 

 

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 who continue to sell their outdated editions.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!

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.

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.

This is a wonderful book, thought-provoking and philosophical as well as useful. It describes the scientific underpinnings of some currently popular technical strategies like Elliot waves and Fibonacci numbers. It's funny how the stock market attracts not only greed but people of great depth of mind as will. Mr. Plummer seems to be one of the latter. I got it from the library (sorry Amazon) but was so impressed I ordered my own copy to reread at my leisure. A delight.

I picked up the book due to high reviews on amazon and the cool sounding title. There are only about 2 chapters on psychology and those parts suck. The rest is elliot, gann, fibonacci, with only a brief mention on how it works....but there is some very interesting info hidden within the pages...

It is clear that the author cares about the subject and had put a lot of work into the research for this book. However the book is too theoretical and does not give the reader any tangible practical skills. If your objective in reading financial books is to improve your investment record in terms of actual dollars made, than this book is not for you.

A very easy to read analysis of the influence of crowds. It opened my eyes to the influence of the Golden Ratio.

Another Fibonacci, Gann, and Elliot Wave book that "fits" historical examples to theory... Where's his trading record?

Hardest to understand book on stocks to date for me. Where is my asprin :0)