Your plain–English guide to understanding and using technical chart patterns
Chart pattern analysis is not only one of the most important investing tools, but also one of the most popular. Filled with expert insights and practical advice from one of the best in the business, Getting Started in Chart Patterns, Second Edition helps new and seasoned traders alike profit by tracking and identifying specific chart patterns.
Substantially revised and expanded, this new edition of the popular guide now includes additional charts for ETFs and mutual funds. It introduces more than 40 key chart formations, as well as trading tactics that can be used in conjunction with them. It supplies actual trades (with dollar amounts), along with author Thomas Bulkowski′s frank discussion of how trading behavior can affect the bottom line. Interwoven throughout the technical presentations are fascinating anecdotes drawn from the author′s quarter–century as a professional trader that vividly demonstrate how one of the best in the business leverages the power of chart patterns.
Praise for the first edition of Getting Started in Chart Patterns
"When it comes to chart reading, Thomas Bulkowski can be categorized as a sui generis [constituting a class alone]. Combining objective analysis with a fictional element has resulted in a highly entertaining read, one that any trader will benefit from."
JAYANTHI GOPALAKRISHAN, Editor of Technical Analysis of Stocks & Commodities magazine
"Nobody explains the nuts and bolts of how exactly to use chart patterns to make real money in trading like Tom Bulkowski. I always do better in my own trading after reading a Bulkowski book. This is the practical, down–to–earth guidance you have been looking for in books on technical analysis. Bulkowski doesn′t give you platitudes he gives you live examples. Even better, he admits that patterns don′t always deliver what we expect and he quantifies both success and failure rates for the top moneymaking patterns. Nobody writes about chart work better than Bulkowski."
BARBARA ROCKEFELLER, independent trader and advisor ([external URL] author of Technical Analysis For Dummies
"In Getting Started in Chart Patterns, Bulkowski offers easy–to–apply advice for looking at charts and making them work more effectively for you in your trading. It is his passion; it probably also will become yours after reading this book. A must for budding technicians!"
GAIL OSTEN, Executive Editor of Stocks, Futures and Options (SFO) magazine
Preface to First and Second Editions ix
Chapter 1 Introduction to Chart Patterns 1
Chapter 2 Identifying Chart Patterns 7
Chapter 3 The Truth about Trendlines 17
Chapter 4 Support and Resistance 35
The Most Important Chart Patterns
Chapter 5 Ten Buy Signals 53
Chapter 6 Ten Sell Signals 119
Chapter 7 Special Situations 191
Chapter 8 Busted Patterns 225
Making Money by Trading Failure
Chapter 9 More Trades 255
Putting It All Together
Chapter 10 The Art of Trading 285
Chapter 11 Crunching the Numbers 323
Visual Index of Chart Patterns 333
About the Author 339