“The book is called an ‘Encyclopedia’ for a reason. In roughly 1000 pages, it contains 53 chart patterns plus 9 more event patterns which will pretty much cover you for any chart you come across…. if you take technical trading seriously, it is a book that should be on your shelf.”
―Alan Battista, Stockineer.com Book Review
The Encyclopedia of Chart Patterns, recognized as the premier reference on chart pattern analysis, extends its lead with this Second Edition. This definitive text includes new bull and bear market statistics, performance sorted by volume shape and trend, more than a dozen additional chart patterns, and a new section covering ten event patterns. Significant events—such as earnings announcements, stock upgrades and downgrades—shape today’s trading, and Bulkowski gives readers the best information on what happens after those events occur. He also shows you how to trade them and uses reliable statistics to back it all up.In each chapter of Encyclopedia of Chart Patterns, Second Edition you’ll learn the following about each pattern:
- Results Snapshot—A statistical summary of pattern behavior, including its performance rank, breakeven failure rate, average rise or decline—all separated by breakout direction and market type (bull or bear)
- Tour—A broad introduction to the pattern
- Identification Guidelines— Characteristics to look for
- Focus on Failures—What failed patterns look like, why they failed, and how to avoid them
- Statistics—The numbers and what they tell you, separated into bull/bear markets and breakout direction, including average rise or decline, failure rates, volume shapes, performance by size, and busted pattern performance
- Trading Tactics—Strategies to increase profits and minimize risk
- Sample Trade—Puts it all together, showing the chart pattern in action, with hypothetical or actual trades using real data
- For Best Performance—A table of selection tips to boost performance
Encyclopedia of Chart Patterns, Second Edition also includes summary tables ranking chart- and event-pattern performance for easy reference; a glossary; a chapter on methodology explaining what each statistical table entry means and how it was calculated; and a visual index to make chart pattern identification a snap.
The result is today’s most comprehensive and valuable technical analysis reference—one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top.
From the Back Cover
Praise for encyclopedia of chart patterns, SECOND EDITION”The most complete reference to chart patterns available. It goes where no one has gone before. Bulkowski gives hard data on how good and bad the patterns are. A must-read for anyone that’s ever looked at a chart and wondered what was happening.”
―Larry Williams, trader and author of Long-Term Secrets to Short-Term Trading
“Chart patterns are the basics behind most trading methods, and this book is a great achievement in a highly useful format. Bulkowski has taken an intelligent and thoughtful approach to producing a practical guide to understanding and trading chart formations.”
―Perry Kaufman, author of New Trading Systems and Methods and A Short Course in Technical Trading
Praise for the First Edition
“Not since Edwards and Magee has someone put together so comprehensive an assemblage of market behavior expressed graphically. No chartist should be without this book.”
―John Sweeney, Interim Editor Technical Analysis of Stocks & Commodities
“Encyclopedia of Chart Patterns . . . is a valuable contribution to the existing literature on charting and should be considered an indispensable reference by any serious chart trader.”
―Edward D. Dobson, President, Traders Press, Inc.
“Meticulously researched, complete, and insightful, the Encyclopedia has earned a permanent place on my trading desk as a highly valued resource.”
―Thomas A. Bierovic, Manager, Strategy Testing & Development, Omega Research, Inc.
About the Author
THOMAS N. BULKOWSKI is a successful investor with twenty-five years of experience trading stocks. He is also the author of Trading Classic Chart Patterns (Wiley), and contributing writer to Active Trader; Stocks, Futures & Options; Technical Analysis of Stocks & Commodities; and other magazines. Before earning enough from his investments to “retire” from his day job at age thirty-six, Bulkowski was a hardware design engineer at Raytheon and a senior software engineer for Tandy Corporation.