Friday, 21 March 2014

Technical Analysis and Stock Market Profits

(The book I am reviewing is the older version, hence I am using the older cover as the image)

This book is written by Richard W. Schabacker. The technical analysis book by Edwards and Magee is considered by a classic, but this book is a predecessor to that bible. In fact, Schabacker was Edwards' uncle. Schabacker's book covers all the familiar technical patterns such as head-and-shoulders and lesser known ones such as the horn.The patterns are divided into intuitive sections such as reversal patterns and intermediate patterns.

There are many similarities to the classic by Edwards and Magee in terms of layout and style. However, Schabacker's book is more detailed with more variations covered. Charts are usually found a page or two away for easy reference. The explanations are short and easy to understand. There are also constant reminders throughout the book on the dangers of misinterpretation which I found to be more muted in the Edwards and Magee book.

This book is a little-known gem which deserves more love. In my opinion, this book is a better introduction to technical charting than Edwards and Magee and the other book should be skipped altogether as it seems like a summary compared to this one. However, for those who want a quick and dirty version, they should still refer to the Edwards and Magee classic (itself not an easy read either).

This book warrants a buy for the serious technical analyst (charting).

Found in NLB: Yes
Recommended: Yes