Technical Analysis for the Trading Professional, Second Edition: Strategies and Techniques for Today’s Turbulent Global Financial Markets by Constance Brown

Summary: Required text for Chartered Market Technician (CMT). Broad coverage of technical analysis techniques with unique personal perspective in using the tools in real life situations. For readers who are not proficient in technical analysis already, this book will not help them learning or mastering the techniques. Readers who are pretty good with at least 1 technical tool, however, will benefit from this book as they can relate their expertise in one tool to the other ones with the excellent pointers Ms. Brown has provided in the book.

Review

First part of the book focuses on correcting certain misunderstandings in common technical tools like trendline, oscillators, and moving averages. To benefit most from the book, just reading the discussions is not enough. You have to look up your own charts and apply the concepts on the instruments / markets you are familiar with so that you can fully understand what the text means.

Second part of the book are interesting ways in using the technical tools. Some of those some how parallel my own work so it is interesting to see how Ms. Brown coming up with something very similar from a different perspective. The part that I do not agree with are the parts on Gann and Elliot Wave which are something I advocate people to stay away from.

Third part of the book tries to go beyond the normal analysis with Ms. Brown’s own personal customized method in using volatility on oscillator, a composite oscillator that combines multiple periods (somehow reminded me of Larry Williams’ ultimate oscillator), and some abstract discussion on chart reading.

Overall this book is a good textbook / reference material on technical analysis. The materials in the book can take some time to understand but the time spent will be well worth it as your knowledge in using these technical tools expanded.

I recommend this book to those who are interested in exploring and learning proper trading techniques with technical indicators.

Share