Customer Reviews

How Technical Analysis Works (New York Institute of Finance)

5 star:		(9)
4 star:		(5)
3 star:		(2)
2 star:		(0)
1 star:		(0)

 

 

Being in the business and a professional technical analyst, I have read many books on the subject, but "How Technical Analysis Works" is truly unique. If you are looking for black and white explanations of technical definitions, indicators, patterns, etc, this is probably not the book for you. However, if you want to learn how to use all of the tools at a technical analysts disposal in the real world, this is your book. There are enough books out there describing how to calculate a stochastic or RSI indicator, Mr. Kamich instead takes his many years of experience and explains how you should use these indicators in real-time. A distinctive feature of this book is his emphasis on thinking outside the box - almost challenging the reader to open his/her mind. This is highlighted by the examples (especially the chart patterns) he includes with his text. The chart examples he has chosen are not the picture perfect examples that rarely happen in real-time, but the type of patterns that challenge you to visualize scenarios that you may not have noticed at first glance. Although Bruce goes into great details in his explanations, this is an easy read that you will really enjoy. For those of you looking for an advantage over your fellow market participants (who isn't, especially in this market environment!), pick up "How Technical Analysis Works" - it is well worth the investment.

This is an excellent book for beginners and intermediate traders. It explains TA in a deep but simple way. The real value of this book (for me) is that it explains what is happening, who is buying and who is selling during chart patterns. It also explains how to trade each pattern.

After reading this book i feel much more calm and confident about what is actually happening on the markets. I can now have my own ideas of market movements, despite news, newsletters and other bloated sources of information. This book will serve as a reference for years to come.

The section on chart patterns is deep and complete. It contains all needed informations, but keeping a focus on price action.

The section on indicators covers (well) the most common ones. I would have liked more indicators.

Barron's named this book one of the best of the year - and for good reason. "How TA Works" is a friendly and easy-to-read (but not *too* simple) guide to charting and technical analysis. Instead of focusing on a single methodology, this book provides an arsenel of tools and explains how they're used for market timing, stock selection, and risk management.

Many of the studies and tools used in the book can be used for free or little $ at TA sites like Prophet ..., the source for charts in the book. It's definitely a good idea to learn from this book while trying it out with the online charts at the same time. That way, you can see how different studies, for example, work on different stocks.

Also, comparing the price to other books in this genre, "How TA Works" is a very good value. Highly recommended, the market not withstanding...

As a student of markets and an industry employee, I've read numerous books. After reading Mr. Kamich's book, it's clear that he's put in a tremendous amount of effort and has leaned heavily upon his extensive experience. As a subscriber to a popular quote/news vendor that he works for, I know that he has successfully transalated some of his real life experiences into this book. A distinguishing feature of this book is the idea that the reader should think alongside the various examples. This is extremely helpful. Too many books give you the gospel - easy to chew through, but not helpful in real life. Trading is very much an individual pursuit, so having the reader think and react, not told, is quite refreshing. This is probably not a book for newbie's, but for everyone else, you'll be pleased. Let's hope a cequel is in the offing!

Bruce Kamich has written one of the best books on technical analysis that I've seen in a long time. Unlike most introductory books, it neither over simplifies, nor does it make it seem as if you need a PhD to learn how to use technical analysis. The book explains how and why technical patterns and indicators work in an entertaining way. On top of that, the examples of patterns in the book are not "text book". You actually get to see what these things might look like in the real world instead of the perfect picture you see in most books. This is invaluable. On top of that, the book is a bargain!

Definately provides a good review of many TA approaches and I really like how Kamich inputs his personal commentary on the market psychology represented by the charts. The big weakness of this book is the lame charts. Considering this is a TA book, which is all about charts, one would think there would be good examples... There are not! I found myself drawing many of the charts he described. In my oppinion, he should have provided them.

Kamich's book is not for the expert technical analyst or a professional day trader. It is appropriately respectful of quantitative and fundemental analysis, limits its discussion to the most proven and reliable indicators, and offers some clever speculation about the underlying dynamics of market structure and market participants that explains why technical analysis may be useful. It also provides a little history of technical analysis back to Dow.

The most provocative parts for me were the sections on gap analysis, volume confirmation, and his excellent chapter on reversals.

For someone who either does not know anything about technical analysis or else thinks of it as the astrology of modern finance (or the Rorschach Ink Blots), Kamich's book is a solid and sensible introduction that is as convincing as it is useful.

Note that this is not a catelog of all the major technical indicators or trends in technical analysis. For that book, buy "Murphy's Technical Analysis of the Financial Markets" also from the NY Institute of Finance.

Whether you believe in technical analysis or not, know that the people you are trading against do use these techniques and either way you should know what other participants are seeing in terms of signals and opportunities. This book is an exceptional start.

Kamich provides a very nicely balanced approach, providing a thorough presentation without becoming an encyclopedia of every obscure technical tool available. The book was written long enough after the 2000 peak that the charts provide both bull and bear examples.

This book is worth the price and you'll make it back many times over by using the information in your portfolio.
The book is well written and easy to skip to the parts that interest you at that time.
I recommend reading the entire book and then going back to review and really paying attention to the details, which can increase understanding and your portfolio performance.
I use this as a follow-up to Stan Weinstein's "How to Profit in Bull and Bear Markets" and "Stikky Stock Charts".
Good investing!

I would recommend this book as an introduction to TA. The author did a nice job of explaining many of the most relevant oscillators and indicators. He further elaborated on the ideal situational pairings for each. Overall, I really liked this book. The only negative in my opinion is that better charts could have been used to illustrate the points explained. For a book on analysis, I would have expected a better selection and better quality of charts. If you're looking for a better understanding of TA, this book would be an excellent primer and a great place to start.