Technical Analysis: Is Mostly Bullshit - Why Flipping a Coin is a Better Strategy than Using Technical Analysis in the Financial, Stock, and Forex Markets Paperback – January 7, 2024

As far as this book is concerned,I will give it 5 stars because it reveals the truth: TA is Bullshit, which is a tall claim but it has truth to it. I don't think it is completely BS - but most of it is absolutely snake oil. It looks fantastic on past charts. What happens tomorrow cant be predicted with confidence.He does not like candlesticks. Yes, Candlesticks are not perfect. Nothing is. But if you apply the MAJOR candlesticks setups at high Bollinger bands,then you can win 65 percent of the time. As long as you cut your losses short and keep positions size small, you should be fine.Kudos to this book. It also guided me to a site where the snake oil salesmen ( purveyors of software, classes and seminars) are exposed. A lot of them have served time in prison for fraud.The message of this book is to trust yourself and not the salesman. I agree with the author.In summary: TA is 80% rubbish, if not all of it.

I should by stating that, in my case, he was preaching to the choir. I have been in the financial markets for 40 years and was never persuaded of any value in technical analysis, except for a possible mild effect of what Morris calls the 'self-fulfilling prophecy'.The book is very short and made for an enjoyable read on a train journey.The only criticism I have about the book is its extensive plugging of the author's other books.I did my MBA at a prestigious business school in the 80s. At that time, I suspect that anyone advocating technical analysis would have been thrown out.20 years later, that same school was running courses on technical analysis.That seems to support the author's hypothesis that the best way to make money out of technical analysis is to teach it.

This got my attention based on the word on front of the book. The author give his opinion about technical analysis and not use it as the main source of trading. And talks about the expensive seminars and courses they sell with there technical analysis. Very good read.

I believe this author has the best intentions to "bedunk" or "unmask" technical analysis that are being marketed as viable methods to analyze the stock market, but he starts off on the wrong premise, that technical analysis is basically charting of prices. That is not what technical analysis is. TA is the plotting of data of how humans respond to information, whether internal, such as earnings reports or external, such as economic data like Non-Farm Payrolls or FOMC (Federal Open Market Committee) or Federal Reserve on Interest Rates. What's interesting, is the charts that he uses to show how plotted data from non-stock market sources proves or better yet according to his position, disproves TA validity actually proves what I'm indicating here. Humans are humans and human behavior is more than likely predictable (i.e. The Bell Curve).So I agree with his position that if view as a stand alone predictor of future prices most TA indicators are faulty at best, but the better premise should be to explain what it actually is and then find those tools that best corroborate that human behavior is repetitive by it's own nature and not at all random (He does state, although at the end of the book, that he doesn't believe the market to be "completely random". The credibility of anyone making any type of claims, either for or against TA, should be in helping the naive to understand humans are the best indicator of future market prices because WE all have the hopes of a better, brighter, bigger future which includes a larger bank account.

The way I see it, TA is a tool the same way a bow sight is a tool. When the archer points the bow's sight at a stationary target, the likelihood of the archer hitting the bullseye will depend on the level of practice. If the archer misses the bullseye, does that mean the bow sight is useless?The author did an excellent job summarizing a broad range of technical analysis that is available to the traders. When it comes to the author's opinion of TA being negative, I think he has a point if the readers are counting on TA being a magic wand that will guarantee long-term success.My opinion on TA is different from the author because I see TA as a tool the same way an archer uses the bow sight as a tool. Just because the archer failed to hit the bullseye with the bow sight doesn't mean the bow sight is useless. There are other factors involved- factors such as the amount of practice you put in, the adherence to the proper techniques such as correct bow stance, proper grip on both the bow and the string, and proper release. Until the archer masters the principles and techniques of bow shooting, the bow sight is useless for the archer to hit the bullseye.I see the same way with TA. The famous patterns, such as Cup & handle breakout, Head & Shoulder breakout, Fibonacci projection, Elliott Wave Theory, reflects the "potential" trigger point. By pulling the triggers, buy or sell, the ability to be profitable long-term will depend on the traders adhering to other factors such as a trading plan with exit strategies to cut losses or capturing the win. Proper money management techniques are the same as proper techniques in archery.The parallel between the two triggers, TA signals, and bullseye inside the bow sight, has one thing in common. It is challenging to capture gain or hit the bullseye. What separates the expert traders/archers from the average traders/bowman is the level of commitment they put into their crafts.While I can't say TA alone made me a lot of money, but I can tell you that TA helped me to cut losses, or catch a trend more times than I could tell. Once I'm in the trade, money management becomes the number one focus. That is how you make money trading, keeping the losses small, and letting the profit run. Archers attempt to group the arrows near the bullseye as opposed to allowing the arrows to miss the target completely. Allowing the arrows to miss the target completely will be like not cutting your losses quickly.In summary, like learning to fly an airplane (or becoming a successful trader), one needs to put in the hours! TA is only a tool that contributes to the total trading experience. Once the trader realizes the limitations of the TA tool, it becomes invaluable to those who use it. Just like an expert archer who learned the limitations of the bow sight!