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Charting and Technical Analysis
To invest successfully or trade in Stocks, Options, Forex, or even Mutual Funds, it is imperative to know AND understand price and market movements that can only be learned from Technical Analysis. You should NEVER attempt Trading or Investing without it!My 25 years experience has taught me that 'every book on the market' regarding Charting and Technical Analysis is seemingly worthless. All seem to find yet another creative way to tell you to “Buy Low and Sell High.” And they offer NO in-depth understanding or analysis about WHO is buying and WHO is selling, and when.Point is, anyone, experienced or not, can show you a picture of a Chart and tell you to buy at the bottom and sell at the top. That is simple 'hindsight,' and is always 20/20.This book is different! It is IN-DEPTH – EXPLAINED and you WILL learn price movements and technical analysis from this information!You will understand and recognize tops and bottoms in the market and in particular stocks, AS they are forming. This is highly valuable information, and you should NEVER attempt to trade or invest without this knowledge.Mutual Funds? Most people think they do not need this information because the have a Mutual Fund. That could not be farther from the truth. Investing your hard-earned money should be done with your own knowledge of market direction, when to buy, and when to move your money to safety. Without this knowledge you are at the mercy of a salesperson hungry to earn a commission. Thus, invariably entering the market at the wrong time and in the wrong investment. No one else has your best interest in mind. So learn to protect your money or keep it in the bank. It's that simple. The next move is yours.
275 pages, Paperback
First published August 30, 2010
2904 people are currently reading
1942 people want to read
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Displaying 1 - 30 of 112 reviews
July 19, 2018
Excellent And Well Written
As I have been trading for a while, I began by skimming through this book. By page 40 I decided to go back to the beginning and read it thoroughly. Every topic is clearly and concisely written with a simplicity that makes it easy to understand and comprehend to beginning and more advanced traders. I was impressed by the fact that the important aspect of the psychology behind price patterns was outlined which is important as you comprehend the reason why some price patterns can be relied upon while others less so. Another aspect that is specially difficult with a book based on charting patterns, is the fact that each chart tells a story which is unfolded as each new candlestick prints, and keeping pace with that story thought the chart can be complex and confusing. Mr. McAllen deals with this in a refreshingly clear manner, enough detail to make the topic clear without drowning it in a sea of detail. This book is very worthwhile and I would certainly recommend it to all.
As I have been trading for a while, I began by skimming through this book. By page 40 I decided to go back to the beginning and read it thoroughly. Every topic is clearly and concisely written with a simplicity that makes it easy to understand and comprehend to beginning and more advanced traders. I was impressed by the fact that the important aspect of the psychology behind price patterns was outlined which is important as you comprehend the reason why some price patterns can be relied upon while others less so. Another aspect that is specially difficult with a book based on charting patterns, is the fact that each chart tells a story which is unfolded as each new candlestick prints, and keeping pace with that story thought the chart can be complex and confusing. Mr. McAllen deals with this in a refreshingly clear manner, enough detail to make the topic clear without drowning it in a sea of detail. This book is very worthwhile and I would certainly recommend it to all.
December 10, 2022
Very concise, short and straight to the point: I've loved that about this book!
It contains the most important advices that one as a beginner investor in stocks can have. It doesn't make it complicated but very simple so one does not get lost in between the charts and the bunch of information.
Great! Very well done.
I think this book will continue to be very close to me as a reference support.
It contains the most important advices that one as a beginner investor in stocks can have. It doesn't make it complicated but very simple so one does not get lost in between the charts and the bunch of information.
Great! Very well done.
I think this book will continue to be very close to me as a reference support.
April 6, 2022
Makes it all clear
As a new position trader/investor, “Charting and Technical Analysis” by Fred McAllen has cleared up many questions about reading charts and I have read many trading books. Excellent read👌😀!
As a new position trader/investor, “Charting and Technical Analysis” by Fred McAllen has cleared up many questions about reading charts and I have read many trading books. Excellent read👌😀!
October 30, 2018
After reading this book, I realized that I have been doing the exact opposite of what it’s saying. TL,DR summary:
- Buy at support, set a stop loss
- Sell at resistance
- Never buy when the trend is down, aka catch the falling knife or aka buying when there is blood on the street
- Instead, buy when the trend is up, use 200 days moving average as signal, buy when price goes above the MA line
- Buy at support, set a stop loss
- Sell at resistance
- Never buy when the trend is down, aka catch the falling knife or aka buying when there is blood on the street
- Instead, buy when the trend is up, use 200 days moving average as signal, buy when price goes above the MA line
October 26, 2016
For those who want to learn the basics of technical analysis this is a nice read. It was easy and fast to read when it was like the author is just talking to you. If you are looking for depth of Technical Analysis, I suggest another book for that.
September 15, 2021
When it comes to early adoption, invisible technologies are often the hardest for humans to relate with. It takes a lot of time and stories to gain a narrative that becomes viable. This is blockchain technology's problem too.
March 19, 2022
This book is technical analysis 101. Covers basics of market trends, it's different phases, support, resistances, candlestick forms and common and useful chart patterns.
A useful and decently pacy read.
A useful and decently pacy read.
February 14, 2021
Excellent, easily digestible and key fundamental concepts explained on technical analysis and investing for beginners.
December 3, 2020
Do not invest a dime in the market before reading this book!!
Everything you need to know to set you in the right path to investing in the market. 1\4 of the way through reading this book, I knew it was going to be worth reading. By the time I was half way through, I was already charting stocks and making predictions. By the time I got to the end, I was charting stocks for friends of mine and helping them determine entry and exit points, stop loses and risk/reward ratios.
I HIGHLY recommend this book to anyone looking to invest in the market!!!
Everything you need to know to set you in the right path to investing in the market. 1\4 of the way through reading this book, I knew it was going to be worth reading. By the time I was half way through, I was already charting stocks and making predictions. By the time I got to the end, I was charting stocks for friends of mine and helping them determine entry and exit points, stop loses and risk/reward ratios.
I HIGHLY recommend this book to anyone looking to invest in the market!!!
July 14, 2019
I wanted a refresher on technical analysis. I'd read some of the well regarded books on TA years ago. This book is between 2 and 3 stars. It's for beginners only and though it has some good ideas and explains most of the basics well, I'd exercise caution here. I felt frustration while reading this as there are mistakes, the charts shown are pretty poor (candlestick charting on a blurry page are not good), the description of various candlestick terminology is lackluster, it feels dated somehow and though the author provides warnings he simplifies things too much.
July 12, 2017
Easy to read and absorb
So easy, I wish every trainer or teacher was this simple and clear! McAllen eliminates the need for more complex tools, although he does not discard them, but makes them unnecessary if someone doesn't want to use them.
So easy, I wish every trainer or teacher was this simple and clear! McAllen eliminates the need for more complex tools, although he does not discard them, but makes them unnecessary if someone doesn't want to use them.
January 18, 2018
Best trading analysis book so far
I keep consulting this book for chart patterns etc and it has never let me down. No fluff just plain and simple analysis. I don’t do much review but had to with this one. Highly recommend it.
I keep consulting this book for chart patterns etc and it has never let me down. No fluff just plain and simple analysis. I don’t do much review but had to with this one. Highly recommend it.
March 22, 2018
Incredibly Informative and Useful
I highly recommend this book. I am new to trading and this book was a major insight into watching trends, looking for indicators, and finding the right time to enter a position.
I highly recommend this book. I am new to trading and this book was a major insight into watching trends, looking for indicators, and finding the right time to enter a position.
October 7, 2011
Good introduction with lots of practical points about technical analysis and charting. A great starting point for any beginner.
September 12, 2015
Buen libro, básico y con un lenguaje sencillo para quienes se interesan en las inversiones en bolsa.
September 4, 2017
Clear and concise with good examples. I am already a way better trader than before reading this book.
December 15, 2017
Great introduction to technical analysis
This was a great book for beginners or one who wants to refresh their knowledge with a slightly different perspective.
This was a great book for beginners or one who wants to refresh their knowledge with a slightly different perspective.
January 3, 2018
Great book
Excellent book that teaches you the importance of technical analysis. Great for swing trading since it shows you the importance of patterns.
Excellent book that teaches you the importance of technical analysis. Great for swing trading since it shows you the importance of patterns.
March 4, 2018
Basic charts
Good detailed analysis on the stock charts. A book that worth spending time to read and understand how the stock market works.
Good detailed analysis on the stock charts. A book that worth spending time to read and understand how the stock market works.
May 17, 2018
Read it
Very informative book lots of charts with notes and annotations. If one would only take the time to fully injest this info in small doses they will be greatly rewarded.
Very informative book lots of charts with notes and annotations. If one would only take the time to fully injest this info in small doses they will be greatly rewarded.
July 6, 2022
A lot of easy to understand info.
February 16, 2022
Most important info;
Chapter 1
“All ships rise and fall with the tide.”
Page 25
“The Market Discounts Everything”
Page 25
Primary trend
Page 27
Secondary trend
Page 27
Minor trend
Page 27
The only time you should be buying stocks, index funds, or mutual funds is when the primary trend is advancing.
Page 28
The Dow Theory teaches that once a primary trend is in place, it continues until something forces it to change.
Page 30
It is much like Newton’s Law.
Page 30
CHAPTER 2
1. The Accumulation phase 2. The Public Participation phase 3. The Distribution phase
Page 32
Chapter 16
Meaning, the moving average is used to find points to exit the market or enter the market.
Page 178
…, they might consider it a sell signal when the 50 DMA crosses over the 200 DMA to the downside. This action is commonly called the ‘death cross.’ It signals very weak market internals when the 50 DMA crosses below the 200 DMA, so they sell and go to cash.
Page 179
Conversely, they would buy when the 50 DMA crossed back over the 200 DMA on the upside.
Page 179
The 200 DMA is considered the one most indicative that a real market trend is in place because it covers a period of 40-weeks worth of trading.
Page 179
For the long-
Page 180
term investor, in a sideways market you are better off in cash.
Page 181
Historically, the 200 DMA serves as ‘support’ for a stock or index price, and also resistance if the stock or index is trading below the moving average.
Page 182
…you can see in April 2010 the DJIA was trading considerably higher than the 200 DMA and is also higher than the 50 DMA. An astute trader would recognize this as it is happening and possibly sell at the top and wait for a correction or pull-back to reenter.
Page 184
In many cases, the breaking of the 50-day average signals a further decline down to the 200-day average. If a market is in a normal bull market correction, it should find new support around its 200-day average.
Page 185
Chapter 17
There is a reason this amount is used for Stop Losses. Meaning, normally if the price drops more than 6% to 8% then there is a valid reason for that much decline.
Page 188
Now, using the strategy of buying when the SPY crosses above the
Page 188
200 DMA and selling when the SPY falls below the 200 DMA, look what he would have accomplished.
Page 189
A trailing stop loss is set to automatically move higher as the stock advances.
Chapter 1
“All ships rise and fall with the tide.”
Page 25
“The Market Discounts Everything”
Page 25
Primary trend
Page 27
Secondary trend
Page 27
Minor trend
Page 27
The only time you should be buying stocks, index funds, or mutual funds is when the primary trend is advancing.
Page 28
The Dow Theory teaches that once a primary trend is in place, it continues until something forces it to change.
Page 30
It is much like Newton’s Law.
Page 30
CHAPTER 2
1. The Accumulation phase 2. The Public Participation phase 3. The Distribution phase
Page 32
Chapter 16
Meaning, the moving average is used to find points to exit the market or enter the market.
Page 178
…, they might consider it a sell signal when the 50 DMA crosses over the 200 DMA to the downside. This action is commonly called the ‘death cross.’ It signals very weak market internals when the 50 DMA crosses below the 200 DMA, so they sell and go to cash.
Page 179
Conversely, they would buy when the 50 DMA crossed back over the 200 DMA on the upside.
Page 179
The 200 DMA is considered the one most indicative that a real market trend is in place because it covers a period of 40-weeks worth of trading.
Page 179
For the long-
Page 180
term investor, in a sideways market you are better off in cash.
Page 181
Historically, the 200 DMA serves as ‘support’ for a stock or index price, and also resistance if the stock or index is trading below the moving average.
Page 182
…you can see in April 2010 the DJIA was trading considerably higher than the 200 DMA and is also higher than the 50 DMA. An astute trader would recognize this as it is happening and possibly sell at the top and wait for a correction or pull-back to reenter.
Page 184
In many cases, the breaking of the 50-day average signals a further decline down to the 200-day average. If a market is in a normal bull market correction, it should find new support around its 200-day average.
Page 185
Chapter 17
There is a reason this amount is used for Stop Losses. Meaning, normally if the price drops more than 6% to 8% then there is a valid reason for that much decline.
Page 188
Now, using the strategy of buying when the SPY crosses above the
Page 188
200 DMA and selling when the SPY falls below the 200 DMA, look what he would have accomplished.
Page 189
A trailing stop loss is set to automatically move higher as the stock advances.
This entire review has been hidden because of spoilers.
January 17, 2021
This is a straightforward introductory manual to elementary charting, mostly focusing on understanding the foundational formations and the underlying trends they may be found within. The format of the text is simple: Understanding of simple trend phases: Accumulation, Participation, and Distribution, and then going through case-by-case, each chart-formation and all their variances, as well as the method by which one may visualize the time-series (line, candlestick etc.)
I thought the information here was fine, though pedagogically I believe the book requires at least 2 readings: 1. Reading the whole thing through 2. Referencing relevant sections as you encounter them during your ‘demo’/rookie interactions with the market. This is where the audience of the book needs to be specified, this book is definitely more of an introductory text on charting. Here also, there should be a demarcation of ‘charting’ vis-a-vis the broader universe of methods within technical analysis. This book does not cover stochastics or any other form of oscillator/technical indicators beyond the basic trigger-types related to the moving-average. Thus, it is not a manual on programmatic or “scientific”/”statistical” technical analysis.
That being said, for a novice, to begin to understand the underlying motivation of those tools, one needs to at least have a grasp on the ‘intuition’ of technical analysis, which I think this book provides well. I do take issue with one major thing in the book, it’s clearly biased. Perhaps this has become perfunctory in most books on the subject, but the author does not really provide much introduction or commentary on either fundamental analysis or the neo-classical approach to investments (i.e. Sharpe/Fama/French portfolio theory & EMH). Further, the author explicitly provides only the chartist. Therefore, a reader who only uses this book will definitely get only one perspective on investment strategy/tactics.
Overall, as a self-published book, this is good as an introduction to the intuition of the technical purview. It’s written in a very informal, easy-to-read manner, and I think it will be a great entry point for readers who may want to go further into a more programmatic approach (as well as do simple swing/intra-day trading). Recommend
I thought the information here was fine, though pedagogically I believe the book requires at least 2 readings: 1. Reading the whole thing through 2. Referencing relevant sections as you encounter them during your ‘demo’/rookie interactions with the market. This is where the audience of the book needs to be specified, this book is definitely more of an introductory text on charting. Here also, there should be a demarcation of ‘charting’ vis-a-vis the broader universe of methods within technical analysis. This book does not cover stochastics or any other form of oscillator/technical indicators beyond the basic trigger-types related to the moving-average. Thus, it is not a manual on programmatic or “scientific”/”statistical” technical analysis.
That being said, for a novice, to begin to understand the underlying motivation of those tools, one needs to at least have a grasp on the ‘intuition’ of technical analysis, which I think this book provides well. I do take issue with one major thing in the book, it’s clearly biased. Perhaps this has become perfunctory in most books on the subject, but the author does not really provide much introduction or commentary on either fundamental analysis or the neo-classical approach to investments (i.e. Sharpe/Fama/French portfolio theory & EMH). Further, the author explicitly provides only the chartist. Therefore, a reader who only uses this book will definitely get only one perspective on investment strategy/tactics.
Overall, as a self-published book, this is good as an introduction to the intuition of the technical purview. It’s written in a very informal, easy-to-read manner, and I think it will be a great entry point for readers who may want to go further into a more programmatic approach (as well as do simple swing/intra-day trading). Recommend
December 31, 2023
"Charting and Technical Analysis" by Fred McAllen is an indispensable guide for anyone looking to navigate the complex world of financial markets. McAllen, a seasoned trader and educator, distills decades of experience into this comprehensive work. The book provides a thorough understanding of technical analysis, empowering readers with the tools to make informed investment decisions.
McAllen covers essential topics such as chart patterns, trend analysis, and support/resistance levels. The author demystifies the intricacies of market behavior, offering practical insights that can be applied across various asset classes. McAllen's emphasis on risk management and disciplined trading strategies sets this book apart, equipping readers with the skills to mitigate losses and optimize gains.
The book caters to both beginners and experienced traders, offering a step-by-step approach to mastering technical analysis. McAllen's writing is clear and accessible, making complex concepts digestible for readers of all backgrounds. Whether you're a novice seeking a solid foundation or a seasoned investor looking to refine your skills, "Charting and Technical Analysis" is an invaluable resource that empowers individuals to navigate the financial markets with confidence and competence.
McAllen covers essential topics such as chart patterns, trend analysis, and support/resistance levels. The author demystifies the intricacies of market behavior, offering practical insights that can be applied across various asset classes. McAllen's emphasis on risk management and disciplined trading strategies sets this book apart, equipping readers with the skills to mitigate losses and optimize gains.
The book caters to both beginners and experienced traders, offering a step-by-step approach to mastering technical analysis. McAllen's writing is clear and accessible, making complex concepts digestible for readers of all backgrounds. Whether you're a novice seeking a solid foundation or a seasoned investor looking to refine your skills, "Charting and Technical Analysis" is an invaluable resource that empowers individuals to navigate the financial markets with confidence and competence.
May 9, 2023
This book is good for someone who wants to learn about the fundamental of financial investment. This book focuses on technical analysis, and believe me: "Fundamental knowledge in technical analysis is far more important rather than knowing many indicators".
The most favorite knowledge that I received from this book is that we must buy the asset at the right time. Sometimes, we need 17 years for the market to significantly increase the price. We must buy the asset when the price will go up, and sell it when the price will go down. This book tells us more about what is the sign that the market will increase/decrease the price significantly.
The most favorite knowledge that I received from this book is that we must buy the asset at the right time. Sometimes, we need 17 years for the market to significantly increase the price. We must buy the asset when the price will go up, and sell it when the price will go down. This book tells us more about what is the sign that the market will increase/decrease the price significantly.
May 21, 2019
A must read for all who need the investor mindset...
As I teach myself investing and trading principles, I found that that K was always feeling lost as if there were pieces of the puzzle missing. This book placed all the pieces in place for me and finally K could see the entire picture. I agree that the picture is quite large but at least I understand what I am looking at now. This book will require me to read it again and again, but of all the trading books I have read, this is the one that gave me the most clarity and allowed me to think like a trader.
As I teach myself investing and trading principles, I found that that K was always feeling lost as if there were pieces of the puzzle missing. This book placed all the pieces in place for me and finally K could see the entire picture. I agree that the picture is quite large but at least I understand what I am looking at now. This book will require me to read it again and again, but of all the trading books I have read, this is the one that gave me the most clarity and allowed me to think like a trader.
October 18, 2019
Persuasive and simple to follow
I was hoping for more advice on software and more quantitative techniques but the author's advocacy on a more visual approach is quite persuasive. Above all his method is well within the reach of most people and not very time consuming. If you want to trade regularly this is not the book for you, it's more about timing and waiting patiently for the right moment. The first half is quiye boring and it doesn't really come together until the final chapters. A good read.
I was hoping for more advice on software and more quantitative techniques but the author's advocacy on a more visual approach is quite persuasive. Above all his method is well within the reach of most people and not very time consuming. If you want to trade regularly this is not the book for you, it's more about timing and waiting patiently for the right moment. The first half is quiye boring and it doesn't really come together until the final chapters. A good read.
May 3, 2022
As someone with little to no background in trading and investing, I find this book an essential read. I highly appreciate the plethora of examples illustrating the author's points. I also appreciate the author's perpetual emphasis on minimizing the inevitable losses that a trader/investor is likely to suffer. Clearly, the author would like to give the message that trading (or investing in) stocks is a risky business, and it should be approached as such. This message is quite the opposite of the impression some inexperienced, yet lucky, people give that trading is a short pathway to wealth.
July 6, 2021
Succinct and high quality, superb introduction
This book is great for beginners and intermediate investors. It has tons of color charts and short but good explanations. I read it on the iPad Pro Kindle App, so I did get the color charts. The patterns and charts themselves are obviously available all over the internet and in other books, but the explanations in this book and it’s ordered nature make it worth it.
Everything in here applies to stocks and crypto.
This book is great for beginners and intermediate investors. It has tons of color charts and short but good explanations. I read it on the iPad Pro Kindle App, so I did get the color charts. The patterns and charts themselves are obviously available all over the internet and in other books, but the explanations in this book and it’s ordered nature make it worth it.
Everything in here applies to stocks and crypto.
March 9, 2024
Great read for beginners, it’s simple and easy to understand the author is good writer explaining patterns and setup easy and ask u to be patient till you find the setup explaining the accumulation phase and distribution phase and some candles description plus the importance of 200 -100-50 moving average plus timing the entry and looking at the big picture 2 years 1 year 6 months and 1 month
In general it will help for swing and long term investment .
In general it will help for swing and long term investment .
Displaying 1 - 30 of 112 reviews