A Broad coverage and practical analysis of chart patterns
(Buy this book on Amazon)
Author Thomas Bulkowski is an experienced and successful investor. His great investing skills made him retire at the very early age of 36. He has written a number of fiction and nonfiction books which include many trading books, the most popular among them are Encyclopedia of Chart Patterns, Getting Started with Chart Patterns and Encyclopedia of Candlestick Charts. Many of his articles have been published in active trader, Technical analysis of stocks and commodities etc. In his blog Thepatternsite.com, he has done a tremendous job by practically explaining chart patterns, candlesticks, fundamental analysis, and many other aspects of technical analysis.
The book “Encyclopedia of chart patterns” is indeed an encyclopedia as it contains almost every chart pattern exists in technical analysis. The author arranged the chart patterns alphabetically in the form of chapters. In the beginning, he has presented the results snapshot according to his analysis of each pattern. It includes the position of a pattern before and after the breakout. A good explanation of pattern formation is also given with proper graphs with identification guidelines which seem to be very useful in identifying the pattern. There is one more important section in each chapter which discusses the failure of pattern. In this section, the author discusses how and when the pattern can fail. Each chapter includes the statistics of the particular pattern according to bear and bull market. One of the useful section in each chapter is the trading tactics which explains how to trade the particular pattern. He has also given a sample trade for each pattern.
Drawback – It’s a lengthy book with more than 1000 pages, which may feel a little tedious task to read at some point. The given statistics or analytical data may vary with time and uncertainty is there.
Overall it’s a good reference book for chart patterns which every trader or investor should have in their library. The author has put a lot of efforts in this book which can be seen and should be appreciated. His analytical data could be useful to many presents and future traders or investors. In the end, one has to work in their own way and these informations can be helpful in one’s trading journey.
Rating – 4/5
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