Encyclopedia of Chart Patterns

Encyclopedia of Chart Patterns by Thomas N. Bulkowski is a large reference book that studies chart patterns using statistics instead of opinion. The author examined a very large number of real price patterns and reports how each one has tended to behave, including how often it works and how often it fails. Each pattern gets its own chapter, with a description of how to identify it, what the usual price behavior looks like and tips for trading it. The book also covers topics such as breakouts, pullbacks and how a pattern can fail, so readers learn not to treat any shape as a sure thing. Its structure makes it easy to look up a pattern you have just spotted on a chart, which is why many traders keep it as a reference. It suits traders who already know the basics of chart reading and want evidence about which patterns deserve their trust, and it fits closely with our guides on chart patterns and technical analysis.