The Psychology of Technical Analysis

0
406

The Psychology of Technical Analysis

Author: Tony Plummer
Publisher: McGraw-Hill Trade; Rev Sub edition (September 1993)
Language: English
ISBN-10: 1557385432
Average Rating: 4 star

This book is a fascinating and insightful work, which brings about an explanation on how emotions drive the financial markets and the ways in which technical indicators can be used to forecast the turning points of markets. Emphasis on crowd psychology has been placed, with a thorough examination of the dynamics of crowd behavior and how it influences markets. It describes how many forms of the technical analysis work are related to the behavior and thinking strategies of the ‘crowd’. Topics which are covered by this book include the ‘logic’ of the crowd for acting in certain ways, how the behavior of the crowd can be predicted, price movements, and the ways to trading success.
The thought provoking and philosophical aspect of this book is also very useful as it assists readers in understanding the integration and disintegration of the crowd and even the mathematical model of these periods. It also describes the scientific underpinnings of some currently popular technical strategies like the Elliott Wave Principle and Fibonacci numbers. The writer has done a great job in helping readers understand this ever-changing organism namely referred to as the ‘crowd’ with brevity and a beautiful presentation.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.