TA - Learning Resources

[GreatPig]

For a first topic on Technical Analysis, I thought we may as well start at the beginning

What resources (books, newsletters, Websites, etc) do you think are good for learning about technical analysis?

I've just read Leon Wilson's "The Business of Share Trading" and thought it was pretty good. It covered the whole game, from how to get into it to the details of charts and the indicators he uses, etc.

I'm now just starting on Daryl Guppy's "Chart Trading", although I've seen more recommendations for his "Trading Tactics".

And I've seen Guppy's newsletter "Techniques in Applied Technical Analysis" recommended a few times, although it's not free so haven't subscribed yet. Does anyone get this?

Colin Nicholson has quite a few articles and newletters on his site too, but so far I've only downloaded the free ones and haven't had a chance to read them.

I've seen Louise Bedford's books recommended a number of times but I haven't bought any yet.

I also have a 1984 edition of the Edwards & Magee book "Technical Analysis of Stock Trends", which I did read back then but haven't re-read recently. From a quick flick back through it, it seems to cover most of the same chart patterns as more modern books, but of course there's no computer stuff.

Finally, has anyone become a member of the ATAA? If so, what's the main benefits of becoming a member?

Cheers,
GP

 

[GreatPig]

Well it doesn't look like this topic is going very far.

I signed up for Guppy's newsletter "Techniques in Applied Technical Analysis", so it will be interesting to see what they're like.

I've also ordered the recent ATAA report on charting software, which supposedly discusses the various products available. I'm hoping BullCharts will be mentioned there. I'm also planning on taking the 2 week trial for BullCharts to have a better look at it.

I'll start another thread shortly for the next TA topic.

Cheers,
GP

 

[RichKid]

Here's my attempt at keeping the thread alive!!

I've had a look at Edwards & McGee and think it's great. It's something of a Bible for me in terms of TA, especially the tactics section at the end. I am a beginner and I found it very easy to follow but have heard experts swear by it as well.
As for more recent books, Louise Bedford's books are easy to follow and I think they're better than Guppy's for beginners. I have heard Guppy speak at seminars at the ASX and he's great too but in terms of books Bedford is easier to follow for beginners as it has a good format. you can't go wrong with either one.

Happy Charting!

 

[GreatPig]

Thanks RichKid. I'll have to look for some of Bedford's books next time I'm in a bookshop.

I remember Edwards' & Magee's book being a bit of a slog when I read it. At the time, I'd read some course notes on futures trading I got from the SFE and a book of Jack Schwager's on futures, and they were much easier reading.

I'll have another look at it though soon.

Cheers,
GP

 

[WaySolid]

I am doing my research on software at the moment.

I have dones some preliminary looking/testing of the following packages:

1) Metastock:

- Very good, but expensive.
- Intra Day trading package will cost extra. Seems to be the most popular traders software.
- All add ons such as fundamental analysis with Marketscan cost $$$.

- Metastock Pro 9.0 (intraday) $3290
- Metsatock 9.0 (+ASX History CD) $880
- Marketscan $449 (fundamental analysis)
- Metamarket + $99
- Portfolio manager $330
- Portfolio analyser $199

2) Ezy Station:

- Reccomended by Leon Wilson in "The Biz of Share Trading"
- Appears very good. Wilson uses both Metastock + EzyStation as he thinks they complement each other.

- EzyAnalyser V5 $379 + 1 months trial data
- EzyChart 5 $429
- EzyManager 5 $379.50
- EzyStation $960

3) Paritech (data)

- Good reviews by all, no negative feedback.

- ASX same day data $352/yr
- next day data $154/yr
- 12 year historical CD $110

4) BullCharts

- An all in one alternative to MetaStock.
- Uses a proprietary data feed
- Good reviews

- Bullcharts $795
- EOD data $352/year
- Live data $148/month
- Live data (equities/options) $159/month

5) Guppy Traders

- Free 14 day download trial.
- Haven't looked at yet.

6) Investor Centre

- Very impressive all in one solution
- Unable to create your own indicators

- IC3000 + 1yr data/sub $995

7) Trade Station

- Used by Nick Radge, a choice of some bigger traders
- expensive
- commission based payment, or base platform fee of $100USD/month

8 ) Stock Doctor

- Excellent fundamental analysis tool
- They give a star rating to all ASX stocks on their analysis
- Customer service appears to be a selling point

- One month trial (deductible from purchase) $49.95
- Stock Doctor yearly $1795.00
- Yearly renewal (CPI linked) - $1199.00

9) Ami Broker 4.50

- A lot of good feedback, appears a viable alternative/replacement to the more expensive packages. Nick Radge also said he haid heard good things about it.

- Pro edition $271

10) Bodhi Freeway. Data

- Bodhi History $199
- Update $65 + Individual categories $75 per cat
- Bodhi Freeway $698 one off payment
- Bodhi Freeway $325/yr

11) Bourse Data

- Software price $440
- Monthly subscription $29.95

* Conclusion *

As a novice trader I will be trialling these in more detail before plunking down the cash. If I could choose without having to pay then I would be starting with Metastock + Stock Doctor!

Since money is an issue! I am leaning towards Ami Broker 4.50 which looks excellent, I would add a one year sub to Bodhi Freeway EOD data to this.

I also have a keen interest in futures and currency trading based on everything I have read so far, I'm not sure of any the packages abilities to deal with both of these?

Hope this is of some help Look forward to reading your feedback/reviews

WaySolid

 

[GreatPig]

WaySolid,

I bought the ATAA's software product review booklet recently. It doesn't really review the software as such, rather just gives comparative lists of all the features and prices. Quite a good summary though.

I've requested the 2 week trail of BullCharts, which I should hopefully be able to start next week. Apparently it's the full version including an EOD data feed with 15 years of historic data. Of course I don't have much to compare it with personally, but I'll see what it's like anyway.

Uses a proprietary data feed

It does, but can apparently also read Metastock format.

I also asked about an NZX data feed, but Weblink don't have one (in fact, I'm finding it very difficult to determine who does actually have one).

I'll see what other trials I can find too.

Cheers,
GP

 

[WaySolid]

Thanks GreatPig, look forward to your feedback.

I am getting the BullCharts trial as well. BullCharts market themselves very much as a better alternative than MetaStock, and they certainly are a lot cheaper. If you are considering intraday trading then the basic Bull package will allow you to do that without investing extra $$$.

AmiBroker 4.5 gives you a free download trial, with almost all features.

I think the stock doctor trial for $50 is also very tempting.

Interestingly MetaStock don't appear to have any trials. Perhaps it would be worthwile buying Meta 2nd hand if thats allowed at all.

WaySolid

 

[JetDollars]

WaySolid,

Thank you for the details provided.

Currently I am trialing IncredibleChart for 30days. I found it quite good. The software is for free and EOD data is only $18 per month as I remember.

Once the trial is over I will get 14 days trial for BullCharts as well. From what I read so far I am very interested with BullCharts, but will trial and see how it go.

 

[still_in_school]

Hey Guys,

have been now using commsec professional trader, its the live platorm... and will have to admit its the best software program yet ive ever used...

and for its price a month of $77.95, its a definite bargain

Cheers,
sis

 

[JetDollars]

SIS,

$77.95 per month? I don't think it is a bargain...

 

[still_in_school]

Hey JetDollars,

its all live data to the second, constantly, and its great for intraday trading as where you only have to enter in your password for buy and sell order, also it charts to the minute which is really great for a quick market scalp...

if you do more than 45 trades in a 3 month period, they will give you the subscription free for the next period... (not sure if thats for a 1 month or 3 month period), i will put a screen shot of what it looks like...

Cheers,
sis

 

[still_in_school]

Heres comsec profesional trader platform...

 

[wayneL]

Looks like the Bridge webiress platform SIS.

It's also available from AOTonline, HSBC, and E-Trade(pro).

It is a fantastic platform.

With AOTonline, you can also trade options.

Cheers

 

[jkool]

Commsec professional trader looks really "yummy" but for myself I would consider it an overkill. I would see the tool to be used by intraday traders and that is not my timeframe. Therefore for my purposes it would also be pretty costly.

As a beginner I did enjoy reading Allan Hulls "Active Investing" and Connellys "Shares In A Nutshell" as they are pretty tiny and I could actually concentrate on reading them rather than jumping ahead impatiently

 

[jkool]

Oh I just realize this was supposed to be TA resources thread - sorry for my previous thread being an OT here then.

 

[still_in_school]

Hi Wayne,

honestly will have to agree its a fantastic program... more depth, and more to the minute madness... lol

Cheers,
sis

 

[wayneL]

I trade through interactivebrokers who have their own dynamic platform, which operates like the bridge platform.

But there are extra electronic frivolities available to enhance this platform.

I use one called Bracket Trader.

With the push of one button (long or short) the software will enter the trade, set a stop loss, up to three target exits, plus a trailing exit. It will also keep track of trading performance, profit &loss, MAE MFE etc.

The ultimate in trading decadence! LOL

 

[still_in_school]

Hey Wayne,

lol... now that is the ulitmate trading program.... lol... the program has totally blown me away....

i can imagine here... clicking... buy, sell, buy, sell, buy, sell.... (its almost like playing a computer game, with your oppononet saying... hey what to my order... "and what happened to my stock holding... lol"

Cheers,
sis

 

[RichKid]

Hey GreatPig,
About the TA books, Edwards and McGee have lots of examples. Just familiarzie yourself with the patterns so you can recognize it ASAP. The last section on tactics is great.

If you found Schwager easy to follow there's his book on Technical Analysis as well, it's a good one to go through.

Also try Louise Bedford's website (mentioned in her book)- it has a few articles with graphs.

Have fun!

RichKid

PS Have Edwards and McGee next to you by the computer and see if you can match patterns to the stocks on your screen, good exercise.

 

[GreatPig]

RichKid,

I've started reading Edwards & Magee again, and now that I'm actually interested in shares (I was primarily interested in futures and options back then) and have read some other TA stuff already, it's much easier going than I remember.

I'll look for Schwager's TA book as well. Daryl Guppy has a big list of reference books on his Website, and that's in his 'B' list (a couple of other Schwager books are in his 'A' list though: "Market Wizards" and "New Market Wizards").

As for articles, I've still got a big pile of stuff I downloaded from Colin Nicholson's site to read yet, and have also subscribed to Guppy's weekly newsletter (have three issues so far, which I haven't had a chance to read yet either).

Cheers,
GP