The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies (Wiley Trading) [Hardcover]

Adam Grimes (Author)

Book Description

Publication Date: July 3, 2012 | ISBN-10: 1118115120 | ISBN-13: 978-1118115121 | Edition: 1

A breakthrough trading book that provides powerful insights on profitable technical patterns and strategies

The Art and Science of Technical Analysis is a groundbreaking work that bridges the gaps between the academic view of markets, technical analysis, and profitable trading. The book explores why randomness prevails in markets most, but not all, of the time and how technical analysis can be used to capture statistically validated patterns in certain types of market conditions. The belief of the book is that buying and selling pressure causes patterns in prices, but that these technical patterns are only effective in the presence of true buying/selling imbalance.

The Art and Science of Technical Analysis is supported by extensive statistical analysis of the markets, which will debunk some tools and patterns such as Fibonacci analysis, and endorse other tools and trade setups. In addition, this reliable resource discusses trader psychology and trader learning curves based on the author's extensive experience as a trader and trainer of traders.

• Offers serious traders a way to think about market problems, understand their own performance, and help find a more productive path forward
• Includes extensive research to validate specific money-making patterns and strategies
• Written by an experienced market practitioner who has trained and worked with many top traders

Filled with in-depth insights and practical advice, The Art and Science of Technical Analysis will give you a realistic sense of how markets behave, when and how technical analysis works, and what it really takes to trade successfully.

Editorial Reviews

From the Inside Flap

Trading is a tough endeavor. And while it's difficult to derive a method that generates superior risk-adjusted profits in today's extremely competitive markets, it's even harder to successfully apply such a method in actual trading. The approach found in The Art and Science of Technical Analysis—one which, in many ways, challenges the traditional thinking of technical analysis—can help you achieve this goal.

Written in a straightforward and accessible style, this book breaks away from many of the standard trading books that have come before it. The Art and Science of Technical Analysis doesn't detail a rigid system to be strictly followed, nor does it present a group of setups and patterns that can be quickly assembled by a trader. Rather, it provides comprehensive coverage of the issues you need to be aware of in order to capture consistent profits from technically motivated, directional trading.

Based on nearly two decades of author Adam Grimes's experience as a trader, analyst, and systems developer, this reliable resource contains valuable insights for both individual and institutional traders, and has been designed with both established and aspiring traders in mind. Divided into four informative parts, it skillfully:

• Explores some of the probability theory supporting the concepts of successful trading, examines a specific approach to chart reading that builds the foundation for a deep intuition about price patterns in markets, and provides an overview of the Wyckoff market cycle
• Offers an in-depth look at the underlying foundation of price movements through coverage of trends, trading ranges, and the transitions from one to the other
• Outlines specific trading patterns and examples of those patterns; advocates a specific way of looking at indicators and other confirming factors; addresses the importance of sizing trades and managing positions; and calls attention to the various risks associated with trading
• Focuses on the elements of trader psychology, from cognitive biases to issues of emotional control, and lays out the challenges that developing traders usually face

Rounding out this discussion are three information-packed appendices. The first is a trading primer that will be useful for developing traders or managers who don't have a familiarity with the language used by traders. The second expands on some specific details and quirks of moving averages, the MACD, which are used extensively in other sections of the book. And the last appendix contains a list of trade data used in the performance analysis found in Part Four.

What you need to succeed in today's markets is a verifiable edge. The Art and Science of Technical Analysis will give you that edge and put you in a better position to improve your overall trading performance.

From the Back Cover

This book, written for both the self-directed and institutional trader, explores the tools and techniques of discretionary trading—the art of trading. Not just a collection of trading patterns and ideas, this is a book that looks deeply into the art of technical analysis, and gives traders the tools and techniques they need to profit in today's competitive marketplace.

Divided into four informative parts, this reliable guide shows traders how to incorporate a rigorously researched trading methodology into a discretionary framework. Along the way, you'll learn a method of looking at charts that focuses on the supply/demand dynamics that move all markets, specific trading patterns the author has used profitably for over a decade, and psychological techniques to deal with the stresses of trading. You will also come to a new understanding of the role risk management and position sizing play in the trading process, and dive into the path of growth and trader development that leads a trader from beginner to professional.

Created with the serious trader in mind—whether individual or institutional— The Art and Science of Technical Analysis puts the author's approach in perspective and will put you on a path to consistent profits. Topics covered throughout the book include everything from the foundations of technical analysis and market structure to trading strategies, indicators and other confirming factors, sizing trades and managing positions, and tips for evaluating your performance and growth as a trader.

Engaging and accessible, The Art and Science of Technical Analysis—along with its informative appendices—will give you the edge needed to improve your trading endeavors.

See all Editorial Reviews

Product Details

• Hardcover: 480 pages
• Publisher: Wiley; 1 edition (July 3, 2012)
• Language: English
• ISBN-10: 1118115120
• ISBN-13: 978-1118115121
• Product Dimensions: 7 x 1.7 x 10 inches
• Shipping Weight: 2.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (19 customer reviews)
• Amazon Best Sellers Rank: #64,003 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

8 of 9 people found the following review helpful

5.0 out of 5 stars Simply the Best! December 5, 2012

By M. Standen

Format:Hardcover

After a 3+ year trading journey l would describe myself as a decent lower intermediate FX daily swing trader, or perhaps better described as a "Competent trader" slowly approaching "Proficient trader" on Adam Grimes' matrix.If l had to choose one book/course/trading website above all others that has brought everything together and helped me the most, this book is absolutely it! l had a good grasp of Price Action/Candle Patterns etc before, but the insights the book provides on Market Structure/Order Flow and the psychology behind it all have completed my understanding and the trading templates are completely rock solid and just the tools l was looking for.This is a brilliant book,the one that l will be re-visiting time and again for guidance in all areas of my trading! The author really has brought together the art and science of technical analysis as well as the theory and practice of trading at the hard right edge!The content is so good l almost want to say nothing and keep it to myself, so even more kudos are due to Adam for sharing his knowledge and experience with us all! Thank you!

15 of 20 people found the following review helpful

5.0 out of 5 stars For Every Aspiring Trader July 30, 2012

By JParks

Format:Hardcover

It takes a lot for me to write a review of any kind. I will start by saying most books on trading are junk! They are usually written (term used loosely) for one reason...self promotion. And while promotion is needed to move your product or services, in trading, it's best to learn from professionals who have been in and weathered the markets for years. And it's these professionals who write the words that are worth reading.

Adam Grimes is a professional trader and his book is the perfect blend of beginner to novice to sustained profitable trader. It's written in a format that flows and every chapter challenges your thinking. If you are serious about becoming a full-time trader then Adam's book is a must. But, don't just read it...STUDY IT. Once you read it...go back and read it again and again until this information is burned in your brain. You can spend thousands upon thousands of dollars at seminars or you can "study" a book written by a professional, like Adam.

I have been fortunate enough to learn the business of trading and have been successful because or books like this. Like I said at the beginning...most books on trading are junk. I have 5 books on my shelf worth reading over and over again and one of them is The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies by Adam Grimes.

Good Trading.

12 of 16 people found the following review helpful

5.0 out of 5 stars Close to as Good as it Gets September 28, 2012

By Sailor Dunc

Format:Hardcover|Amazon Verified Purchase

Grimes' work, and make no mistake, this IS a "work", is as close to as good as it can honestly get in this genre. While written in simple accessible style, this is no breezy weekend read. One of the most sage bits of advice comes right at the start: when finished, go back and study certain chapters again.

The reader that will get the MOST out of this contribution, in my view, is someone who already has a bit of mud on their boots from the trenches. In the appendix he provides a "Primer" aimed at the novice. But it is SO basic (how to place an order) that the gesture seems more to mollify an anxious publisher's jacket writer than serve the book's main audience. If you just now got the "what are orders" part down, the take-homes of the book will be pretty fuzzy for awile. And the extra burdens of interpretation and active management a bit much to expect. There are other more full length primers out there. A (precious) few quite good.

This book is different. And that is what makes it special. While it IS a fairly comprehensive trading overview, the FOCUS of the book is interpreting and acting on largly uncluttered price action. Few books, even on technical analysis, narrow in on such a basic start point. And Grimes does so with organized, well expressed, non-contradictory prose. In other words, a treat.

Rather than remain safely high on cliche and low of detail, the book is rich with specific set-ups and engaging commentary.

Grounded in evidence based, probability founded science, it emphasizes the ART of making sense of it all. Of reasoned interpretation and discretionary decisions. This is refreshing. Many of the best books out there, as cognizant as Grimes of the disastrous effect of human nature, emotion and misjudgment, stress the opposite tact. The only hope is creating an "objective" testable system that marginalizes faulty judgment and emotion. The fact of the matter is, subjective opinion's effects are STILL and always, everywhere. The day that ends - no more market. Yet each tiny choice changes each participant's outcome. Gaining a lasting TRUE edge is key. Yet, given the high degree of randomness, this is extraordinarily illusive and very hard work.

Faced with this sober reality, his own approach is that of a swing trader. But in the more accurate, not popular sense. I recently put down Dave Landry's Layman's Guide. Both look at simplified price action and quite similar initial set-ups. Both advocate swing trading expectation (at least initially) and grabbing partial profit quite early. Where they DIVERGE in goals and trade management I find quite stimulating. Read!

I will just say Landry's hybrid swing-trend blend SEEMS the more logical. A great compromise. The purer swing style coached by Grimes however is certainly more instinctual. More importantly it SEEMS the more realistic and prudent. Grimes makes you ask yourself how time-LIMITED a given entry set-up or bullish chart pattern is likely valid for. Dispite popular mantras, the more "miss than hit" challenge of PURE long term trend trading (enduring deep drawdowns that MUST be made up by sufficient extraordinary runs), is easier said than done. Especially in our times. Grimes' insight, no, the very market structure he helps YOU see evolving, is like having a probability gauge, however slight, as you navigate your OWN way through the wall of fog known as the right margin.

Reviewers offering NOTHING but accolades can be suspected (sometimes with reason) to be the author's mom or of his/her customer fan base. So here are two knocks. Sorry son: First. He suggests short and long versions of much of the book's preferred patterns would basically be mirror images. Flip them and away you go. Really? Sometimes no doubt. But the implications and thus psychology can be dramaticaly different. Affecting the volatility and compression of the action. And therefore "how it go'na look". Especially around possible signifigant tops and bottoms.

2nd "beef": Record such a detailed personal Trading Diary that you include EVERYTHING right down to "what you had for breakfast"?? For future result analysis? I nearly choked on my cheerios, blurting: "Give me a break Adam!" Indeed elsewhere he echoes Nassim Taleb about the tendency of humans to see correlations and patterns where there are none. Such a tendency provides an endless boon for "the industry" and an ever present risk for traders. In equal measure. Yes yes his POINT is okay: As we are the main part of our trading equation: know thy state and self (warily).

Truly digesting THIS WORK, a diary can expect to show not only improved performance correlation but whetted appetite for MORE such nourishing fare. As the author would agree, no book is "all you need". It never is. But for this one's refreshingly GROUNDED discussions on SEEING risk and recognizing possibley superior set-ups at that hard right edge: My first 5 stars. Sail On!