Within the pages of this book, youll learn how to identify chart patterns, supported by easy-to-understand performance statistics describing how well a pattern works, what the failure rate is, and what special quirks suggest better future performance. Being a math and finance major, I will eventually get to it and determine the validity of his findings, but for now, and for all intents and purposes, it provides a VERY detailed analysis coupled with vast experience from the academic mind of an engineer. The Encyclopedia of Chart Patterns, Third Edition further solidifies the reputation of this book as the leading reference on chart patterns, setting it far above the competition. In fact, I went back and analysed some of my past losing trades after reading this book to discover that I had completely misidentified some patterns.

Pattern recognition is crucial, and knowing which patterns work best, and under what conditions is essential knowledge. Though I have not checked the validity just yet, either way, this book is a great leap forward into a proper quantitative basis in the securities markets. I think this is one of the most comprensive books in chart patterns I ever read, I believe it is important to study this book as it helps me to analyze the chart patterns far better than other book. It puts you in the passengers seat so you can share lessons learned from Bulkowski's trades This edition reports on statistics from nearly four times the number of samples used in the Second Edition and ten times the number in the First Edition The Encyclopedia of Chart Patterns, Third Edition further solidifies the reputation of this book as the leading reference on chart patterns, setting it far above the competition.In addition the period covered was limited to five years only, and that in a market that was almost entirely bullish.

Really the only gripe that I could even potentially see is that it would be a lot nicer to have the pertinent Size Statistics information like the very important Average Formation Length stats directly out front on the first page with the title of each pattern. is a valuable contribution to the existing literature on charting and should be considered an indispensable reference by any serious chart trader. Joining Tour, Identification Guidelines, Focus on Failures, Statistics, Trading Tactics and Sample Trade is Experience. He is not an expert on pattern formation but in software and unfortunately has identified patterns mainly by programme and with poor results. With over 60 charting patterns included in the book, it is always handy to check on a forming pattern and check on the historical data to help predict the chance of an upward or downward breakout.Bulkowski has taken an intelligent and thoughtful approach to producing a practical guide to understanding and trading chart formations. In roughly 1000 pages, it contains 53 chart patterns plus 9 more event patterns which will pretty much cover you for any chart you come across…. You can change your choices at any time by visiting Cookie preferences, as described in the Cookie notice. Encyclopedia of Chart Patterns, Second Edition also includes summary tables ranking chart- and event-pattern performance for easy reference; a glossary; a chapter on methodology explaining what each statistical table entry means and how it was calculated; and a visual index to make chart pattern identification a snap.