Stock Market Trend Technical Analysis (8th Edition)

Author: Edward
Publisher:
Publish Date: 2004-02-01
Features: "Technical Analysis of the Financial Markets (8th Edition)": What makes a book so difficult to become a classic? Not only a classic, but also a practical guide and manual for current market operations? To answer this question, we must ask another: What are chart patterns? The chart patterns discovered and analyzed by the author of this book are graphical representations of human behavior in complex multi-variable environments. They describe various human behaviors related to a single variable (i.e., price). Price generates a series of impacts and consequences: fear, greed, desire, cunning, malice, naivety, profit estimation, brokers' need for income, susceptibility to deception, professional financial advisors' hunger for performance and job stability, supply and demand of stocks, liquidity and money flow, self-destruction, passivity, setting traps, behind-the-scenes manipulation, blind arrogance, conspiracy, deception, and double transactions, economic cycles and beliefs in them, public sentiment, and humanity's relentless pursuit of "correctness." Chart patterns are the language of the market, telling us that this stock is in its death throes; that stock is on a rocket heading to the moon; a certain stock is involved in a life-and-death battle; and another stock's bulls have just defeated the bears and are shifting to a defensive stance. In short, they are the indelible fingerprints of human nature left in the greatest competition humanity has ever experienced, excluding war. Just as Freud mapped the human psyche, Edwards and Magee mapped the human intellect and emotions as they manifest in financial markets. They not only mapped authoritative patterns but also invented methods to interpret human and market behavior to profit from it. Before the advent of new breakthroughs in artificial intelligence aided by unimaginable computer hard drives, it is hard to imagine further progress in this field.