Trading Between the Lines
Pattern Recognition and Visualization of Markets
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3.0 • 1 Rating
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- $36.99
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- $36.99
Publisher Description
Insights into a pattern-based method of trading that can increase the likelihood of profitable outcomes
While most books on chart patterns, or pattern recognition, offer detailed discussion and analysis of one type of pattern, the fact is that a single pattern may not be very helpful for trading, since it often does not give a complete picture of the market.
What sets Trading Between the Lines apart from other books in this area is author Elaine Knuth's identification of sets of patterns that give a complete analysis of the market. In it, she identifies more complex chart patterns, often several patterns combined over multiple time frames, and skillfully examines these sets of patterns called "constellations" in relation to one another. These constellations turn sets of individual patterns into a more manageable set of patterns, where the relationship between them can lead to tactical trading opportunities.
Shows how to apply complex patterns to specific trades and identify opportunities as well entry and exit points Markets covered include commodities, equities, and indexes Presents an effective trading approach based on real market cycles-as opposed to computer simulations-that are found in active markets
Moving beyond the simple identification of basic patterns to identifying pattern constellations, this reliable resource will give you a better view of what is really going on in the market and help you profit from the opportunities you uncover.
Customer Reviews
Trading between the lines
Author Knuth, who appears to be a successful trader, attempts to explain trading patterns using metaphors and quotes from Don Quixote, which makes for an interesting read. However very little in new pattern recognition is unveiled. About a dozen common technical patterns are presented in a metaphoric manner such as describing a breakout as a "Lightning Bolt" and a story to go along with it. Others are; "Valley of the Kings" or a trend pullback to prior support, "Icarus" a Greek mythological character to portray a parabolic move, "Fractals" which is nothing more than Dr. Elder's Triple Screen, "The Snake" or a basing period and "Knock on the Door" which terminates a trend. Not much new here.
I had great anticipation for this book as it promised to examine price without indicators or oscillators, yet most patterns included at least one of these crutches. The real issue I had with the pattern explanations is that only a few had comments or advice on how to trade them. Most of the patterns never discussed entry, or exit for that matter. Execution was left to the reader's imagination. The last chapter dealt with risk and money management, but offered little in the way of substance, at least to an experienced trader.
In the book's forward the author suggests that if only a few ideas were taken from the book it would be well worth the read. I did take a few ideas away so there wasn't any over promise. I just think maybe an under deliver.