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 – December 27, 2019

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 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 book is a good quick read if you want to get a basic understanding of all the various types of technical analysis. Various financial videos on YouTube show stock charts with technical indicators & talk about technical analysis. Not to mention all the ads that pop up trying to sell you someone's trading method. I had a basic understanding of TA but this book made TA much more clear & understandable without spending long hours reading some thick technical stock trading guide that cost a lot more $$. I also like the examples the author gives of how TA isn't all its professed to be.

The truth of the book can be gleaned from the title. If you are falling prey to technical analysis this book might wake you up before it’s too late.But I found the writing way too sloppy for my taste, I was expecting at least some deeper look into some aspects of technical analysis that the author himself calls “plausible” but found nothing more than a couple passing sentences. At least it was a brief read.As someone that has plenty of experience with charts and graphs the theme of the book simply gave voice to what I already knew or at least suspected to be the case, so I have no real problem with the specific details. However, for someone that actually believes in TA the sloppy writing and lack of depth will detract from its utility. And you will find that in other reviews.But, in defense of the author, it is really hard to research and write in depth about a topic that you know for a fact is just BS.

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!

This book opens your eyes to Technical Analysis. Tells you the Rest Of The Story, so to speak. A thinking person's approach to TA. The market does not know if the price has reached one of the Fibonacci levels or not, that is why there are so many levels, at least one of them is bound to hit, and it is so easy to curve fit, as the book explains. Sure, some MA do work, like he says, the Golden Cross & the Death Cross, but generally, it seems that TA makes money for the book sellers rather than the system buyers!Good read!