 | Book Review: Technical Analysis Using Multiple Timeframesby Mr. Bilderberg on June 18th, 2008 at 12:54 am |
I have little interest in books. In addition to philanthropy and duty to family, I simply haven’t the patience to engage in what I consider to be “trivialities”. However, while on the quaint golf courses of Dubai, I insisted that Rag recite to me Brian Shannon’s new book, Technical Analysis Using Multiple Timeframes. I must note that the book is much more worthwhile than its suspect title or unadorned cover–which is appreciably lacking in fine jewelery–suggests. To be sure, I concluded Mr. Shannon’s book with a new found respect for what I had previously regarded as a racket for charlatans.
By conveying the psychology behind the market conditions expressed by charts, Mr. Shannon has conferred upon technical analysis what was in my mind a much-needed air of legitimacy. Rather than explicate the newest fads for identifying bullish candlestick formations in stocks, he articulates the underlying dynamics of supply and demand that heretofore have been under-emphasized in technical analysis literature. In doing so, the book doesn’t just establish TA as something more than “a great way to predict where stocks have been”, it establishes it as indispensable tool for well-informed trading.
But the book isn’t only about the true nature of moving averages and trend lines (though, even it were, it would still be more than worth the price of admission). By expounding the inextricable influences of timing, risk management, and self-discipline, Shannon has written a book that wraps everything up into a complete guide for formulating your own approach to successful trading.
What’s more, Technical Analysis Using Multiple Timeframes succeeds in all of this in less than two hundred pages. The result is a book that’s to-the-point, and filled with quick–yet sufficiently elaborate–insights. While reading this book, I often felt as if every other sentence was quote-worthy. I could readily picture Shannon as having employed such maxims countless times while giving instruction to the thousands of students of trading that he’s taught over the years. If you flip the book open to any random page, you’re sure to find at least a dozen fresh insights.
And, in conclusion, it is with these insights that I endeavor to increase the disparity between the haves and have-nots. Though I cannot offer too many hints about the nature of my newest money-making scheme, I will say that unrest is the Balkans is likely to be accelerated to new heights of panic. Also, the enterprising among you may do well to place bets that anticipate a dramatic surge in the influx of South American narcotics.
Regards,
Mr. Bilderberg.
Nice.
June 18th, 2008 at 2:19 amIs this The Fly’s way of giving in to lazy trading?
June 18th, 2008 at 3:33 amSilly Juice. Clearly, Fly was complimenting the use of diction in this passage.
June 19th, 2008 at 8:52 amHis technical analysis said oil was going higher today. Based on his methods, he almost has to love every top to buy and every low to sell. sorry, doesn’t work. then when he is wrong he says ‘expect anything’.
June 19th, 2008 at 12:24 pmhe did not say oil was going to be up, he said that all indicators point up. hence you either go long, do nothing, but never go short.
June 19th, 2008 at 12:39 pmwhether you like it or not, expect anything pretty much summarizes the markets.
tx
He did say the stock market was very likely to go down today, and oil up. When he is wrong, it is a ‘false and failed move which are quick’ and ‘expect anything’. his indicators said sell s&p today and buy oil. wrong, wrong. Moreover, 99% of people that sell their system do it because their stuff can’t be replicated, so book time. why would you give away their livelihood for $80 bucks? why do they need money? or, they write a book and leave out all the other stuff you need. either way, buyer beware.
June 19th, 2008 at 3:13 pmpick a stock. check 10.20.50.100.200 moving averages. look for last high and low on 10 and 60 minute timeframe. if higher lows and higher highs on a few timeframes, look to see how close price action is to last high and low. if you can get like a 1:3 risk to reward, then buy. and sell or tighten stops at last recent high if tested to lock in profits. now send me $80. all you do is manage risk. what sounds sound and great is just another way to lose money.
June 19th, 2008 at 3:48 pmyou’re a bunch of haters. Brian Shannon has helped me learn about the stock market more than anyone else. if you’re so much better, please post links to your blogs so i can learn from you.
that book, coupled with his daily videos, has made me a way better trader. what do you get out of shit-talking him?
June 19th, 2008 at 5:16 pmGunners, could you post a brief review of Brian’s book. I’ve been tempted to grab it, just waiting for a couple reviews or opinions on it. If nothing else just a rating on a scale of 1-10 would be nice, thanks.
June 19th, 2008 at 5:36 pmI am only about 2 chapters in on the book, but i’ve been watching his videos everyday for the last 6 months or so. his style makes great sense to me. It really dumbs it down, so i guess it might not be good for people that think they are hot shots already. i’m brand new at technical analysis, and he explains it better than anyone else that i’ve come across.
He has loads of reviews on his webpage.
June 19th, 2008 at 6:16 pmI’ll have to check that book out.
June 19th, 2008 at 6:46 pmI have done some thinking and I feel like I have reasons why technical analysis would be a great description of market pyschology, particularly flat channeling patterns where bulls battle bears, and once the buy the dip bulls give up on buying (or run out of “granades”) they might even panic sell the rest of their shares, and meanwhile all of the technical traders come in.
On the upside the “sell the rip” bears give up, and get squeezed out, and the bulls charge on.
Volume is important, because you want to know that not only are there bulls or bears giving up, but you also want to know that the winning side has total conviction and has the “killer instinct” in putting the bulls/bears out of their misery.
The trending up and trending down makes some sense too I think. I think before I read the book I’ll make a post about this describing more details on my concept of how I believe technical analysis describes market pyschology.
Personally I don’t think it’s neccesary to know how, but it couldn’t hurt.
Analogy: You don’t need to know everything about a car and it’s engine in order to drive, but it couldn’t hurt to have a basic understanding so you know why it might break down, and what you can do to avoid that situation.
Please be cynical and dont drink the kool-aid all at once. If this guy made bank he wouldn’t write a book and have such a bad looking cover and he would be able to sell on amazon right away. think this through. it makes sense, but if it worked he wouldnt do a blog. do the best tradesr on wall street do blogs? ah no. never ever ever buy books on the market because you will be suckered into being the 90% that fail. please think different and spend time in front of a chart.
June 19th, 2008 at 7:22 pmLearning Wrong, I don’t really follow Brian Shannon, so don’t have an opinion positive or negative about his work.
However, in my other working life as a bookseller, I can tell you that Amazon may be mainstream, but it’s not the best arrangement financially for the author. Personally I think it was a good decision for Brian to self-publish his book, he makes a better percentage compared to what he would get from a big publisher. Only the graphic designer makes money from a fancy cover, it won’t help you trade stocks better. He already reaches his potential buyers efficiently through his website, so he doesn’t have to give up a chunk to Amazon just to market the book.
Also, if I wanted to, I could create a listing on Amazon in five minutes to sell his book.
Dunno, but it seems to me, if his style of chart analysis doesn’t work for you, just buy a different book instead of slagging on him. jmho.
June 19th, 2008 at 8:56 pmHis system said buy oil and sell stocks on thursday. now he seems very bullish for friday. if wrong again, just be objective and why throw good money after bad? give him all your money, i don’t care. i assume all who buys these books will keep losing and looking for the holy grail forever.
June 20th, 2008 at 12:27 amHey watch first objectively:
from the introduction from his book:
“Personally, systems-based trading does not suit my personality. I choose to approach the market with discretion. Discretionary traders place high confidence in their ability to interpret market action and make slight adjustments to their approach as the market action dictates.”
so what freaking system are you talking about? he doesn’t have a system.
June 20th, 2008 at 7:11 amCan this guy be any more WRONG. market down huge. so 0 for 3 in last 3 calls, and wrong, wrong, wrong, wrong.
June 20th, 2008 at 12:35 pmi hope everyone here sends him one thousand dollars and you end up blowing up your account. guess who is the one laughing? not you. a good trader thinks on his feet and why you worship a free video ‘guru’ is perhaps the dumbest thing i have ever seen. can i sell you stuff too?
Sooooo, you made your point, you don’t like his work …. let’s talk about you, what’s your system or theory, Keep Defending?
Where’s your blog so I can visit it? Do you trade for a living?
Contribute something to this site, like a post to the Peanut Gallery and share your thoughts, instead of spending your time criticizing just ’cause somebody did a book review.
June 20th, 2008 at 12:53 pmyou say he is 0 for 3 in his last calls. HE DOESN’T MAKE CALLS. he is completely unbiased. i don’t know where you find these so called “calls”. he doesn’t make them. he gives you the information, he gives you the possibilities, and he lays them out in an easy to understand way.
did he beat you up in elementary school or something?
June 20th, 2008 at 1:05 pmUncle Howard liked it. Good enough for me:
“Over the years I have become more of an investor than trader, but that has not reduced the importance of risk, psychology and money management, all of which I get from Brian’s book and website as I peruse the charts and his technical analysis skills. The book is a great read and combined with his daily website updates you have all the technical analysis ideas and coaching you need to make money consistently.
Howard Lindzon”
June 22nd, 2008 at 5:03 pm