Technical Analysis Plain and Simple: Charting the Markets in Your Language (3rd Edition) [Hardcover]

Michael N. Kahn (Author)

Book Description

Publication Date: January 23, 2010 | ISBN-10: 0137042019 | ISBN-13: 978-0137042012 | Edition: 3

“This book is an excellent primer. As a proponent of the art-versus-science school of technical analysis, his primary focus is on the practical aspects of chart reading and how to translate the intelligence derived from charts into investment decisions. If you have ever wondered what technical analysis is, or how you could get started doing it, this is a good place to start.”

John Bollinger, CFA, CMT, President, Bollinger Capital Management

 

“Here is the place to discover why the RSI goes up while the price is going down, how to measure potential moves from a breakout, how not to look at a chart with preconceived notions of what the market will do--‘Let the market talk....’ The advice is above all practical. [This is] a book to own, particularly in the earlier stages of your investment career.”

Michael Smyrk, STA Journal

 

“Finally, an easy-to-understand explanation of how technical analysis works! This primer shows investors how to spot trends and patterns in the markets that can help them choose winning stocks. Full of practical advice, this is a must have for both individual and professional investors.”

Susie Gharib, Coanchor, PBS Nightly Business Report

 

The Best-Selling Introduction to Technical Analysis: Updated with New Examples, Techniques, and Guidance!

• Fully updated with new coverage of bubbles, sector rotation, and rare “black swan” market events

Technical analysis offers powerful, objective tools for picking stocks and making money--and in today’s market environment, that makes it more indispensable than ever. Unfortunately, most technical analysis books confuse investors instead of enlightening them. In this clear, practical, fully updated book, Barron’s Online technical analysis columnist Michael N. Kahn introduces proven technical analysis techniques in simple language that any investor can understand and use.

 

Kahn explains how technical analysis works and then teaches you how to read charts and translate them into investment decisions. You’ll learn how to use technical analysis to complement your current approach to stock selection, discover what makes a stock look promising, and objectively assess both risk and reward.

 

This completely revised third edition contains many new examples reflecting today’s transformed market environment. You’ll find detailed new coverage of recognizing bubbles, including real estate (2006), oil (2008), and bonds (2009). Kahn presents powerful new insights into the relationship between technical analysis and market psychology and crucial, up-to-date guidance on sector rotation in rapidly changing markets. He also presents a full chapter on navigating through chaotic, once-in-a-millennium, “black-swan” market events.

 

• Why technical analysis works
  Bringing real objectivity to investment decision-making
• Chart patterns: See the forest and the trees
  Recognizing markets that are changing, need a rest, or are about to take off
• Understand the central importance of price...
  And what you must know about volume, time, and investor sentiment
• Down the road: a taste of advanced technical analysis
  Candlesticks, cycles, Elliott waves, and how to debunk those guys on TV

Editorial Reviews

Review

Top technical analyst and Barron’s Online columnist Kahn demystifies technical analysis.

While many investors view technical analysis as a mystical “tea-leaf reading” process, “this could not be further from the truth,” says the author, in the second edition of this handy guide to technical analysis. Indeed, Kahn teaches investors how to bring clarity and objectivity to their market decisions by augmenting their fundamental research with the use of technical analysis. Beginning with a general overview of the subject, the author then moves on to the core concepts of chart analysis and the various facets of the investment process. Finally, he covers more advanced topics like candlesticks, cycles and Elliot waves, and also explains common technical terms and jargon and how to identify patterns, listen to the market and “reality check” broker recommendations.

Investors will appreciate this straightforward and clear guide to technical analysis.

 

--Kirkus Reports, Vol. 3, Issue 3 (March 31, 2006)

--This text refers to an out of print or unavailable edition of this title.

From the Back Cover

Technical analysis is a hot topic for investors right now and offers powerful, objective tools for picking stocks and making money--but most explanations of the subject simply confuse investors instead of enlightening them. In this clear, practical book, Barron's columnist Michael Kahn introduces technical analysis in simple English. Kahn explains exactly how technical analysis works, then teaches you how to read charts and translate what they tell you into real buy and sell decisions. The fully updated Second Edition contains many new examples reflecting major market changes since the First Edition: 9/11, equities bear markets, commodities bull markets, changing interest rates, and more. Step by step, Kahn illuminates the basic theory of technical analysis, demystifies its jargon, outlines its core techniques, and shows how to use it to complement (not replace) the reader's current approach to stock selection. He explains trendlines, chart patterns, and corrections; reveals what makes a stock look promising; and helps to assess potential risk and reward. --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Hardcover: 352 pages
• Publisher: FT Press; 3 edition (January 23, 2010)
• Language: English
• ISBN-10: 0137042019
• ISBN-13: 978-0137042012
• Product Dimensions: 6.3 x 1.2 x 9.2 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (12 customer reviews)
• Amazon Best Sellers Rank: #302,391 in Books (See Top 100 in Books)
  • #59 in Books > Business & Investing > Industries & Professions > E-commerce > Online Trading

More About the Author

Michael Kahn has been working with charts and technical analysis since 1986 and currently writes the weekly 'Getting Technical' column for Barron's Online. He was formerly Chief Technical Analyst for BridgeNews and a regular on such financial programs as PBS' Nightly Business Report, Yahoo Finance Vision and WebFN. He has written three books on technical analysis, most recently "A Beginner's Guide to Charting the Financial Markets,' and has appeared frequently as an instructor on online schools such as BloombergUniversity.com and WebStreetUniversity.com. Kahn has also served as Director of Marketing for the Market Technicians Association.

Customer Reviews

Most Helpful Customer Reviews

17 of 17 people found the following review helpful:

3.0 out of 5 stars A good beginner's guide to TA, August 9, 2007

By 

James Lor "James Lor" (Montreal, CANADA) - See all my reviews
(REAL NAME)   

This review is from: Technical Analysis Plain and Simple: Charting the Markets in Your Language (2nd Edition) (Hardcover)

This book is a good beginner's guide to technical analysis. The author touches on many aspects of technical analysis but doesn't go as deeply as Pring or Murphy. As an example, the author explains Elliot Waves in 4 pages, and there are 3 diagrams in those pages.

The book is 300 pages, but it's also 37 chapters. The chapter heading takes about a third of the page, there are breaks between subjects, there are a lot of charts, and not all the pages are filled completely top to bottom. There is less than you think. Take away the large headings, the subject breaks, the charts, fill up the pages completely and this book is probably only 150 pages to explain 37 chapters of material, which is barely enough to scratch the surface, which is what a beginner's book should contain.

One thing I like is that the author uses REAL LIFE examples. One thing I don't like is that while the author does a decent job of explaining the patterns, he doesn't show how to use those patterns as entry or exit points to help you make some $$$.

Overall, an average book at a good price if you want to learn technical analysis, but not trading. But if you want a GREAT book at a good price instead of just an average book, do yourself a favor and invest an extra $10 and buy "How Technical Analysis Works" by Bruce Kamich.

6 of 6 people found the following review helpful:

5.0 out of 5 stars Plain, simple, and invaluable., May 12, 2007

By 

Stephen Morefield (China) - See all my reviews

This review is from: Technical Analysis Plain and Simple: Charting the Markets in Your Language (2nd Edition) (Hardcover)

This is a great book for people who are fairly sophisticated about the market but don't have a clue about technical analysis (that would be me). It cuts the jargon to a minimum and treats each facet of technical analysis as a tool, explaining its use and its limitations. It gives the careful reader insight into the market, and is useful both as an introduction and as a reference. If you want to be a serious investor, I'd say this is a very useful book, perhaps even an essential one.

17 of 22 people found the following review helpful:

5.0 out of 5 stars Plain and Simple? Refreshingly so., August 10, 2006

By 

Scott Worcester (Milwaukee, WI) - See all my reviews
(REAL NAME)   

This review is from: Technical Analysis Plain and Simple: Charting the Markets in Your Language (2nd Edition) (Hardcover)

As a private investor and trader, I'm always on the lookout for pros that can take seemingly complex investment ideas and break them down in a thoughtful and understandable way. This is where the author's crawl, walk and run approach to technical analysis brings the message home, showing how it can be used as a "you are here" guide when you aren't exactly sure where your investments stand or when you should buy or sell, despite what the fundamentals are telling you. This book is chock full of powerful ideas and particularly timely given the fact that our markets and economy are facing increasing headwinds that will only worsen in coming months. I would recommend it to fellow investors, friends and family that want to protect their portfolios and add focus and discipline to their buys and sells, and also for those that want a reference text for the TA discipline. If you agree that a Dr. shouldn't sum up chest pains without first consulting X-rays and EKGs and that a sea captain shouldn't fare stormy weather without an up-to-date navigational chart, you may appreciate the insightful methods Mr. Kahn hammers home with his step-by-step guide to charting the markets.