The movement of market prices has a similar nature with many physical processes, whether they walk the meteorite in the asteroid belt or the movement of plasma particles in magnetic fields. Schedule of stochastic variations in the magnetic moment of the ion has caused the liveliest interest a trading environment. Experienced traders can easily find it a double top, head to the shoulders, converging triangles and many other elements of technical analysis. Moreover, based on knowledge of technical analysis, they unsuccessfully made forecasts of further changes to the schedule. Obviously, the general theory of dynamical chaos is spreading its influence on market processes. Some concepts of this theory, such as "attractor" and "fractal" is already reflected in the technical analysis. But before constructing a rigorous physical theory is still very far away. The level of current knowledge in this area is still only at the stage of formation of concepts and classification of elementary solutions. No less difficult is the case and proper technical analysis.
What is technical analysis today? John Murphy gives the following definition: "Technical analysis - a study of market dynamics, most often through charts to predict future price trends." Investigations by the graphs - it is just a set of tools, skills and rules for the market. Admittedly, the level of knowledge, and on the spirit of modern technical analysis is very similar to medieval alchemy. The same ambiguity and vagueness of the language and a large proportion of Philosophy, bordering on mysticism and superstition.
There are reasonable questions. Do this alchemy? What is the attractiveness of technical analysis for the professional trader? Every trader for myself to find answers to these questions. But undeniably, the tools, skills and rules of technical analysis filtered generations of investors. This material, the hard-won experience and honed skills of thousands of traders and professionals of the stock market. But the material of this - not a frozen dead form. The principal feature of it is in continuous evolution. Tools, skills and rules of technical analysis is constantly changing and transforming in a nonlinear medium changing market. All this brings TECHNICAL EXPERTISE in the field of mechanical research plots in the field of art.
Book Schwager is a wonderful symbiosis of art and scientific approach of the experimenter-trader. The main guiding thread is presenting a comprehensive discussion of the basic elements of technical analysis with practical refraction in real trading situation. The author picked up a large amount of graphic material from the various trading platforms, illustrating the practical use of technical analysis. The first part of the book is devoted to the classic elements of the analysis of graphs, their rationale and the inner essence. Special attention is paid to this part of the criteria for the applicability of different instruments, creative approach to their use. A separate chapter in the statement presented by Steve Nison technology market analysis with a "candlestick". The second part of the book is a practical guide for the application of the material the first part. The author examines over a hundred specific trading situations. Each of them is first analyzed in detail by means of technical analysis. The author explores the possible reasons for entering the market, involving the reader in decision-making process: buy / sell. Then on the next page is a discussion of further development of the real events and commented on the validity or wrong decisions. Intriguing form of presentation and the brilliant style Schwager teacher makes this part of the book in a fascinating workshop on trader skill.
The third part of the book is devoted to the oscillator and cycles, and written in collaboration with Thomas Birovshem and Richard Mohi. Indicators Oscillators fluctuations or long and strongly occupied a niche in the arsenal of technical analysis tools. They have proven their effectiveness in terms bestrendovogo market. A detailed account of the nature and characteristics of various oscillators in a remarkable way to add the description of traditional misconceptions of their use and practical guidelines for use in trading. Continues the theme of the theory of cyclical market analysis. Schwager practices paints dry theory "eight practical steps" to design their own cycles.
The fourth part deals with trading systems. Trading systems - it is not just a tool, but it is a complete mechanism. And that means more power and performance in skilled hands, and, consequently, greater risk and danger in the hands of a beginner. Seam-ger as an experienced professional reveals his secrets of building trading systems. We discuss their structure, development, testing and optimization. Examples of original trading systems.
The fifth and final part of the book deals with the strategy and philosophy of trade. Can not get past the 82-x (!) Trade rules, crystallized from the 22-year investment experience "guru". These rules - the actual quintessence of the whole book. This - the parade of ideas Schwager philosopher.
Informative material, clarity and readability deservedly put the book of Jack Schwager in a number of the best contemporary monographs technical analysis.
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