“Forex Chartist Companion – A Visual Approach To Technical Analysis” by Michael Duane and James Lauren Bickford – A Book Review

If you read my previous book reviews, then you certainly know how much I like this type of companion books. Mostly I enjoy the graphs and seeing the logic behind- and the more I see, the more puzzled I am (but this is another topic). “Forex Chartist Companion – A Visual Approach To Technical Analysis” was no exception to the rule – I enjoyed massively the approach laid out into its pages.

“Forex Chartist Companion – A Visual Approach To Technical Analysis” is written at a basic level which builds up to higher (more advanced) topics. In this respect, the book is somehow typical for the American educational books (it could have easily been called “Charting for Dummies”). It has also some advanced features, but overall it is written at an intermediate level.

The book is written with the average trader’s needs in mind – you should not expect advanced techniques described there. It could not do it without sacrificing the width of treating the topic – and here the book does a fantastic job in listing almost any imaginable type of forex chart. If you thought you knew them all, “Forex Chartist Companion – A Visual Approach To Technical Analysis” can prove you wrong.

I will not list the summary here, since it would take me several pages. I will just say that the book is divided into six comprehensive parts:

  • Details Forex-specific charting techniques
  • Illustrates the use of point and figure charting in conjunction with Forex trading
  • Explores Forex swing charting
  • Outlines a variety of Western and Japanese reversal charts-from pivot charts to Kagi charts
  • Examines the actual trading system of veteran futures guru Charles Goodman

For me, reading Goodman’s principles was the most enjoyable part. I was not familiar with his work (except for a few references here and there). The cornerstone of Goodman’s Swing Count System remains the classical “50% Retracement Measured Move” (called by him “the rule”), very similar to the Elliott Wave but much more specific (if you remember the 3rd wave, here’s where you could place yourself). Compared to Elliott, Goodman looks much less complicated and easily applied to the normal trading conditions which characterize the market.

The ordinal and cardinal principles from Goodman’s approach are easily understandable and applicable, no doubt. If you are a visual type of person, you might also enjoy a lot the description of the point and figure charts.

In my opinion, to read such a book at least once in your trader’s life it is important. It is also good to have one like this on your shelf, for quick reference. If you are a beginner, the merrier is the lecture, since you will learn many things from this Wiley Trading book. If you are experienced, well, you might want to look again into your library – and if you do not have such a companion charting book, you could buy one.

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