This book Chart Patterns Analysis: How a super trader made $42 million with $11,000 within 23 monthstrading stocks is a must-read by all traders. Fred Tam is one of the industry’s foremost technical analysts. I have known Fred for 20 years and have taught classes on technical analysis together. Although my brand of technical analysis is different, the same patterns show up time and time again. Like anything worthwhile it takes time to learn but this would be time well spent.
Mr. Lim Tat Seng and Mr. KH Tan are also friends of mine. They are Senior Lecturers at Fred Tam’s technical analysis school. The three experts combined make a very compelling reason to learn this method of analysis.
When it comes down to price change, after all the fundamental analysis has been read, digested and evaluated, it is the irrefutable law of supply and demand that causes all price change. If there are more buyers than sellers willing to sell then price must rise. If there are more sellers than buyers willing to buy then price must decline and if buying and selling are equal, price must remain the same. There is nothing else other than supply and demand and demand and supply. This is exactly what technical analysis endeavors to do – take you directly to the answer.
Founder of Dorsey Wright & Associates,
Richmond, VA, USA
A comprehensive guide to profiting from candlestick charting techniques
Japanese candlestick charting is a time-tested and highly effective method for timing the market for short-term and long-term profits. With hundreds of illustrated charts taken from leading international companies, noted author and futures trading expert Fred Tam demonstrates the predictive power of candlestick charting signals and how to properly integrate them with proven Western technical analysis techniques to maximize returns in any market.
The Power of Japanese Candlestick Charts explores the many advantages of the candlestick charting methodology, including:
Leading Indicator–the ability to show reversal signals earlier than Western charting techniques
Visual – pictorial chart construction allows traders to immediately recognize buy and sell signals
Versatile – can be used alone or with Western technical analysis techniques
Flexible – can be used across any time dimension and with any market or multiple markets simultaneously.
Candlestick charting is a proven methodology as a stand-alone market analysis tool, but Mr. Tam contends that it is even more powerful when combined with trend analysis and technical indicators like Moving Average, RSI, Momentum, MACD, Stochastic, DMI, CCI, Percent R, Bollinger Bands, and Elliott Wave Theory. The Power of Japanese Candlestick Chartsis a comprehensive and valuable guide to candlestick charting that is perfect for analysts, stock or day traders, and short-term position traders.
Publishers : John Wiley and Sons
(Steve Nison endorsement of Fred Tam book “The Power of Japanese Candlestick Chart”.)
“Fred Tam’s new book is a welcome addition to the field of Japanese candlestick charting. This book has the same attributes of candle charts, they are clear, concise and give powerful insights.
Fred Tam wrote “Profitability Of Technical Analysis: A challenge of Market Efficiency” in 2006. Fred Tam is an experienced trader, a knowledgeable technical analyst, a serious and scientific student of the stock market and an inspiring educator. These desirable characteristics of Fred Tam gathered together to help him write this significant contribution to the world’s literature on financial markets and to offer practical applications of technical trading tools for trading or investing in the Malaysian stock market.
This book makes three special contributions to the study of financial markets. First, it provides a rigorous recapitulation of the Efficient Market Hypotheses (EMH) theory, which sets the stage for a presentation of the anomalies and the detractors that have beset the EMH during recent years. Second, the book reports the finding of a comprehensively designed and carefully executed empirical study of the Malaysian stock market.
From a step-by-step filtering process, there emerges from this research several robust and reliable technical
market analysis trading systems that offer the opportunity to traders and investors to earn above normal returns in the Malaysian stock market. The third unique contribution of this book to the field of investments is in the three case studies relating to special high-risk circumstances facing the Malaysian investor. The book offers insights into the unique character of each type of risk situation and it offers specially-crafted technical analysis approaches to cope with each such circumstance. This third contribution is like a sequel, an additional bonus, to the first two contributions of this book.
Fred Tam wrote “The Da Vinci Code: Application To Stocks, Futures And Currency” markets in 2006. The numerous stock, futures and currency chart examples illustrated in this book clearly demonstrate how the Divine Proportion, phi, could effectively be used to measure time and price targets in financial markets. The Malaysian financial market including its derivatives is no exception.
To ask why markets behave in such a way, stopping at significant phi numbers of 1.618, 2.618, 0.618 and 0.382, only to either fall backor to advance further is like asking why the tail of a comet curves away from the sun in a log spiral, why pine cones, sea horses, snail shells, mollusc shells, ocean waves, ferns, animal horns, and the arrangement of seed curves on sunflowers and daisies all form log spirals, why hurricane clouds, whirlpools and galaxies of outer space swirl in log spirals, and why the human body is an embodiment of the proportions of phi – from the construction of the human DNA to body height, the proportion of limbs and the facial proportion of a perfect face.
The answer must lie in that financial markets, like all things natural, are governed by a much higher cosmic force that is so overpowering and exact that the only way to benefit from its power is to understand it and to embrace it with awe and respect.