Technical Analysis for Dummies by Barbara Rockefeller is similar to all other books in the Dummies series, highly readable, simply written in plain English, providing all the basic information about technical analysis. It also shows that technical analysis is actually not so technical or mathematical, and therefore easier to follow than what may appear from all the parameters involved. Technical analysis is considered very important for forex trading since it helps to gauge the right trading moves on the basis of information collected from data, charts, and graphs. Technical tools hold good for any time frame and help to make the right investment decisions. They help in capital rotation, investment for the very short term or even the long term. The book helps to explain how to implement these in one’s own trading initiatives and make the best trading decisions. The author Barbara Rockefeller, is one of the best known experts on technical analysis who has also founded the Rockefeller Treasury Services.
The following are the learning highlights of the book:
- Teaches about the essence of the market, by explaining simple phenomenon like market sentiments and why price movements take place
- How to manage trades. This focuses on the various trading styles, how to adjust positions and how to stop losses, essential as an exit route for all those caught in a trap of losing money invested.
- How to read charts. The book throws light on the right way to read charts and the various parameters involved, like time frames, candlesticks and other special bar formations which can help in gauging trends.
- How to find patterns in prices. This is part of the technical analysis since patterns help in ascertaining the support and resistance levels, see trend lines and then decide on the course of action for investment.
- Provides a background on back testing and optimization.
- How to spot turning points in the market and price levels.
- Finding the best times to sell.
All these are helpful in cutting losses, minimizing risks and making a cautious move in the trading world with higher chances of earning profits. Besides detailed information on various other trading parameters, the book stands out for the last part that focuses on Top Ten Rules. These include:
- Ten ways in which the market has undergone a change
- Ten rules that need to be followed for working with indicators
- Ten secrets or tips from the top technical traders-that is, traders who base their trading decisions primarily on technical analysis.
In short, the book is one the best technical analysis companion and guide to keep, and use to evolve a trading system based on technical analysis.
