Stock Market Trend Technical Analysis (8th Edition) (8th Edition)

Author: Edward
Publisher:
Publish Date: 2004-02-01
Features: It is indeed a wonder that a book written in the mid-20th century still maintains its practicality and significance today. In fact, "Technical Analysis of the Financial Markets" has always been the authoritative work in the field of stock chart analysis. Counterfeits, imitations, and pale substitutes have emerged endlessly, just like seagulls following fishing boats engaged in production. However, the truth is that none of them have added any new content to the original knowledge system of Edward and Magee (Magee participated in revisions until the 5th edition). What could make a book become a classic with such difficulty? Not only a classic, but also a practical guide and manual for current operations? To answer this question, we must ask another: What are chart patterns? The chart patterns discovered and analyzed by the authors of this book are graphical representations of human behavior that remain unchanged in complex multivariate environments. They describe various human behaviors related to a single variable—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' thirst 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, conspiracies, deception, and double transactions, lunar phases and solar spots, 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 one stock is in its death throes; another is on a rocket heading to the moon; a third is involved in a life-and-death battle; and another's bulls have just defeated the bears and are shifting from defense to offense. In short, they are the indelible fingerprints of human nature left behind in the greatest competition humanity has ever experienced, excluding war. Just as Freud mapped the human psyche, Edward and Magee mapped the human intellect and emotions as they manifest in financial markets. They not only created authoritative maps but also invented methods to interpret human and market behavior to profit from it. Before the unimaginable breakthroughs in artificial intelligence supported by computer hard drives, it is hard to imagine further progress in this field.