Why am I passionate about this?
Economics isn't really a good starting point for financial market analysis for the simple reason that its models are wildly inaccurate. As behaviorial economists like Daniel Kahneman have been showing, irrationality and the inability to measure risk properly are a very big component of the investment and trading decisions. But statistical risk management is also sloppy when applied to human behavior because people are not objects that reliably behave the same way under similar circumstances. So when you read an economist about markets or an engineer about risk management, you're missing a lot of the story. In the end, technical analysis is fascinating because how and why humans behave is an enduring mystery.
Barbara's book list on for traders using technical analysis
Why did Barbara love this book?
You may have noticed that hardly anyone uses simple lines on a chart anymore—everyone uses candlesticks. When I was revising my own book, the technical advisor recommended just deleting the part about different types of standard bars and presenting only candlesticks. What’s so likable about Bigalow’s work is his total clarity, in the book and also on his website. He identifies the candles you need the most, shows you what they look like, applies them in real cases, and tells you the outcomes. Not only are the charts as clear as can be, so is his prose.
1 author picked Profitable Candlestick Trading as one of their favorite books, and they share why you should read it.
The updated edition to one of the most popular books on technical analysis Japanese candlestick charting and analysis is one of the most profitable yet underutilized ways to trade the market. Signals created by this unique method of technical analysis-represented in the form of graphic "candlestick" formations-identify the immediate direction and effects of investor sentiment through price movements, allowing traders to profit by spotting trend reversals before other investors. This updated version of Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits makes learning the method fast and easy by introducing specific patterns, as well as the psychology behind them.…