Encyclopedia of Chart Patterns (Wiley Trading) (Hardcover)

~ (Author) "Price trend is downward, leading to the formation..." (more)
Key Phrases: breakout statistics, yearly price range, hanging man formation, Sample Trade, Feb Mar Apr May Jun Jul, Aug Sep Oct Nov Dec Jan (more...)

Editorial Reviews

Review

"Trading Classic Chart Pattern ist zusammen mit Encyclopedia of Chart Pattern der erste wirkliche Fortschritt seit der Basisarbeit, die von Edwards und Magee vor mehr als 50 Jahren geleistet wurde."
Der Aktive Trader, Nr. 10, Oktober 2002

Product Description

Praise for the encyclopedia of chart patterns "A great achievement that fills a void for everyone who uses charts. Bulkowski has taken an intelligent and thoughtful approach to producing a practical guide to evaluating chart formations." —Perry Kaufman Author of Trading Systems and Methods, Third Edition "Not since Edwards and Magee has someone put together so comprehensive an assemblage of market behavior expressed graphically. That you also get a solid statistical assessment of the results of these chart formations is an unexpected and invaluable bonus. No chartist should be without this book." Interim Editor, Technical Analysis of Stocks & Commodities "Encyclopedia of Chart Patterns is a book I have wanted to see published for many years. It brings together the patterns found in many diverse charting methods and adds the valuable dimension of performance statistics, trading tactics, and behavioral characteristics of each pattern. It is a valuable contribution to existing literature on charting and should be considered an indispensable reference by any serious chart trader." —Edward D. Dobson President, Traders Press, Inc. "Having worn out my 1948 first edition of Edwards and Magee’s Technical Analysis of Stock Trends, I thought I knew a lot about chart patterns. Thomas Bulkowski’s Encyclopedia of Chart Patterns showed me how much more there is to learn. Meticulously researched, complete, and insightful, the Encyclopedia has earned a permanent place on my trading desk as a highly valued resource." —Thomas A. Bierovic Manager, Strategy Testing & Development, Omegs Reserch, Inc.

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Product Details

• Hardcover: 688 pages
• Publisher: Wiley (January 21, 2000)
• Language: English
• ISBN-10: 0471295256
• ISBN-13: 978-0471295259
• Product Dimensions: 10.2 x 7.3 x 1.6 inches
• Shipping Weight: 3.2 pounds
• Average Customer Review: 4.2 out of 5 stars  See all reviews (46 customer reviews)
• Amazon.com Sales Rank: #295,945 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

74 of 75 people found the following review helpful:

5.0 out of 5 stars Regarding inaccurate statistics, August 24, 2000

By	Barry Rudd - See all my reviews

I don't even know Mr. Bulkowski, but I felt compelled to write this review. One particular reviewer points out a few apparent discrepancies in this 672 page volume of research. It does not matter whether you are an author or have been published in trading-related magazines.

The reviewer sarcastically poses that since the "rectangle bottom" stats on page 659 portray a zero faulure rate, that traders can get rich and never lose money!

If you truly read the entire text, including Mr. Bulkowski's opening remarks that define his fresh statistical-analysis approach, then everything falls into place.

Furthermore, the author addresses the "zero loss stat" for the rectangle formation on pages 440 and 444. He states that the "sample size" was small for this pattern and said: "Let me emphasize that because I did not find any failures of rectangle patterns with upside breakouts does not mean there are none."

This is a good and comprehensive book with a very fresh statistical approach for analyzing classic (and newer) bar chart formations. There is a wealth of information addressing each of the many patterns. It is offered up to the reader as copious amounts of quantified data that any trader/investor can draw from to incorporate into his or her own trading.

I too am an author, and I trade stocks full-time for a living. This book is a great resource and fits in the top 15 T.A. books of which I own roughly 300.

Yeah, he called a "dogi" a "hanging man." To me that doesn't detract from the other 671 pages.

Buy it, read it and use it!

47 of 48 people found the following review helpful:

5.0 out of 5 stars Essential, an authentic classic, February 29, 2000

By	Animal Lover (CT USA) - See all my reviews

I have been using statistical techniques for many years and thought most "patterns" are mostly in the eye of the beholder. I have yet to see a head-and-shoulders. But some patterns are so obvious that recently I have looked for definitions and explanations. This author not only provides them, but also has done the heavy lifting of testing 500 securities over 5 years in order to say how often each pattern is successful, how much you are likely to make from it, etc. This has never been done before and is very useful. "Encyclopedia" went to my top 10 technical analysis list in the first ten minutes I had it. It will be the most dog-eared book since Edwards and Magee.

76 of 81 people found the following review helpful:

5.0 out of 5 stars A stunning achievement, a classic, September 16, 2000

By	Animal Lover (CT USA) - See all my reviews

This book is a must-have for anyone interested in technical analysis, whether just starting out or more experienced. It is a thorough review of patterns not seen since Edwards and Magee (1948) and deserves the name "encyclopedia". The author takes a scientific approach and does not make "claims" for one pattern or another, as a critical reviewer states. He clearly acknowledges that patterns, as with any technical method, only indicate, they do not dictate, and we are always working with probabilities. The back-testing that yields statistics on pattern performance (failure rate, average gain, etc.) is useful, but best of all is the absolutely clear description of the patterns with identification guidelines. Of the 100 or so books on technical analysis on my bookshelf, this is far and away the most-consulted. I have been using statistics-based technical analysis for over 20 years (moving averages, stochastics, and the like), but increasingly see patterns like double tops, triangles, etc. This book is an invaluable adjunct to software-generated statistics-based technical analysis. I am a professional financial writer on technical analysis as well as a money manager.