The Art and Science of Technical Analysis

A breakthrough trading book that provides powerful insights on profitable technical patterns and strategies

The Art and Science of Technical Analysis is a groundbreaking work that bridges the gaps between the academic view of markets, technical analysis, and profitable trading. The book explores why randomness prevails in markets most, but not all, of the time and how technical analysis can be used to capture statistically validated patterns in certain types of market conditions. The belief of the book is that buying and selling pressure causes patterns in prices, but that these technical patterns are only effective in the presence of true buying/selling imbalance.

The Art and Science of Technical Analysis is supported by extensive statistical analysis of the markets, which will debunk some tools and patterns such as Fibonacci analysis, and endorse other tools and trade setups. In addition, this reliable resource discusses trader psychology and trader learning curves based on the author’s extensive experience as a trader and trainer of traders.

• Offers serious traders a way to think about market problems, understand their own performance, and help find a more productive path forward
• Includes extensive research to validate specific money-making patterns and strategies
• Written by an experienced market practitioner who has trained and worked with many top traders

Filled with in-depth insights and practical advice, The Art and Science of Technical Analysis will give you a realistic sense of how markets behave, when and how technical analysis works, and what it really takes to trade successfully.

Table of Contents

PART I The Foundation of Technical Analysis

CHAPTER 1 The Trader’s Edge

CHAPTER 2 The Market Cycle and the Four Trades

PART II Market Structure

CHAPTER 3 On Trends

CHAPTER 4 On Trading Ranges

CHAPTER 5 Interfaces between Trends and Ranges

PART III Trading Strategies

CHAPTER 6 Practical Trading Templates

CHAPTER 7 Tools for Confirmation

CHAPTER 8 Trade Management

CHAPTER 9 Risk Management

CHAPTER 10 Trade Examples

PART IV The Individual, Self-Directed Trader

CHAPTER 11 The Trader’s Mind

CHAPTER 12 Becoming a Trader

APPENDIX A Trading Primer

APPENDIX B A Deeper Look at Moving Averages

and the MACD

APPENDIX C Sample Trade Data

About the Author

ADAM GRIMES is the CIO of Waverly Advisors, an asset management and risk advisory firm headquartered in New York. He began his career as an independent trader focused on agricultural and currency futures, and moved on to manage a successful private investment partnership. Grimes’s experience as a trader covers futures, equities, currencies, and derivatives, in time frames ranging from intraday to multi-month swings. Though he is primarily a discretionary swing trader, his methodology rests on a firm foundation of statistical and quantitative research. Grimes holds an MBA with an emphasis in finance and market microstructure, and has worked for a number of private investment firms, as well as having spent several years at the New York Mercantile Exchange.