Exposing the unreliability of technical analysisTechnical analysis is one of the most widely used and taught methods of financial markets analysis. It is becoming particularly popular with time poor retail traders who are taught that chart patterns, trend lines, indicators etc offer quicker ways to make trading decisions. But how reliable are these methods?
Technical Analysis and the Active Trader exposes the flaws and unreliability of technical analysis. Using examples from real market scenarios, robust independent studies and behavioral finance, technical Analysis and the Active Trader shows how and why traders will struggle to be profitable using charts and indicators.
"synopsis" may belong to another edition of this title.
When I left the world of professional trading rooms and trading floors after 14 years as a senior trader in London I became exposed to the world of retail traders for the first time.
What struck me was the use of trading and analysis techniques that I had not used or seen used by professional traders during my career. Chief among these is technical analysis.
In the industry technical analysis is more often used by the sell side - brokers and analysts rather than traders.
I was also intrigued by the sales techniques of those who were teaching technical analysis.
I wanted to find out if I was missing anything by not using technical analysis so I spent nearly two years researching. I read dozens of independent studies into many forms of charting and technical analysis; I attended seminars run by technical analysis educators; I looked to what we have learned from behavioral finance about decision making; and I followed real market examples.
It became clear that technical analysis was no where near as reliable as its supporters claim. The information suggested that most who use it will fail.
With this book I want to show a realistic picture of technical analysis. As well as detailing its unreliability, I explain why it is flawed; some of the key underlying assumptions simply do not stack up to how markets really work.
In Technical Analysis and the Active Trader you will see the reality of technical analysis for most who use it. The lessons learned will help you with your own trading.
Go beyond the tired rules of technical analysis to uncover a wider range of profitable opportunities
Technical analysis can be dangerously unreliable, as most technicians will reluctantly attest. Technical Analysis and the Active Trader presents an entirely new approach to the markets, one that combines traditional technical tools with fundamental analysis, behavioral finance, and more to help you understand what makes prices move.
Author Gary Norden is a veteran professional trader, as opposed to a theory-driven mathematician. In Technical Analysis and the Active Trader, Norden examines technical analysis from a trader's perspective to reveal:
Decades-old technical analysis strategies are no match for increasingly complex markets and traders. Technical Analysis and the Active Trader shows you how to bolster your program by integrating technical, fundamental, and psychological analysis into a well-rounded investment approach that plays off the strengths of contemporary markets, as opposed to the wishful thinking of obsolete technical analysis.
Improve your trading with this dynamic combination of fundamentals, technicals, behavioral finance, and commonsense
Veteran traders know the perils of relying on easy answers. They know that technical, chart-based indicators and unproven rules of thumb might lead to the occasional lucky call--but they will never lead to long-term market success.
Technical Analysis and the Active Trader introduces you to a powerful trading approach that integrates knowledge of fundamentals and trader psychology with specific technical indicators for a sensible, structurally sound trading program. This eye-opening book breaks through the numerous fallacies of technical analysis to show you how to truly understand markets, companies, and other traders, limiting your risks while giving you a broader sense of which direction markets and traders are likely to head next.
This straightforward rulebook will give you the knowledge you need to uncover lower-risk opportunities and get the most from those opportunities. It reveals strategies that savvy traders use to:
The majority of technical trading instructors and guides would have you believe that trading is a clear-cut process of unswervingly adhering to rote charts and signals. If that ever worked, it certainly doesn't anymore. Technical Analysis and the Active Trader adapts the traditional claims of chartists and technical analysts to new research and changing realities, showing you how to use all available market data to make informed, intelligent, and profitable trading decisions.
"About this title" may belong to another edition of this title.
Book Description McGraw-Hill, 2005. Hardcover. Book Condition: New. 1. Bookseller Inventory # DADAX0071467912
Book Description The McGraw-Hill Company. Book Condition: New. pp. 256. Bookseller Inventory # 5826805
Book Description McGraw-Hill, 2005. Hardcover. Book Condition: New. Never used!. Bookseller Inventory # P110071467912