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Show Notes
Getting Started in Technical Analysis (Jack D. Schwager)
- Amazon USA Store: https://www.amazon.com/dp/0471295426?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Getting-Started-in-Technical-Analysis-Jack-D-Schwager.html
- Apple Books: https://books.apple.com/us/audiobook/technical-fundamental-analysis-for-beginners-2-in-1/id1683353043?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Getting+Started+in+Technical+Analysis+Jack+D+Schwager+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0471295426/
#technicalanalysis #chartpatterns #trendfollowing #movingaverages #riskmanagement #GettingStartedinTechnicalAnalysis
These are takeaways from this book.
Firstly, The logic of chart reading and market structure, A central focus of an introductory technical analysis guide is explaining why price charts can be useful in the first place. Schwager frames technical analysis as the study of market behavior expressed through price, volume, and time, translating crowd psychology into observable patterns. Readers learn the foundational vocabulary of trends, ranges, and turning points, including how markets shift from accumulation to markup, then distribution and decline. The topic typically covers the practical meaning of support and resistance, why prior highs and lows matter, and how traders interpret breakouts, pullbacks, and failed moves. This foundation helps readers stop treating charts as art and start treating them as structured evidence. It also clarifies an important nuance: technical analysis is probabilistic, not predictive. A pattern or level does not guarantee an outcome, but it can define a trade idea with clear invalidation. By connecting chart structure to decision making, the book positions chart reading as a way to organize uncertainty, avoid random entries, and develop repeatable methods that can be applied across stocks, futures, currencies, or other liquid markets.
Secondly, Trend identification tools and moving average frameworks, Many beginners struggle with a simple question: is the market trending or not. This topic explains common ways technicians classify trend direction and strength, using tools that reduce noise while staying responsive to changes. Moving averages are typically introduced as a core technique, with attention to how different lookback lengths suit different trading horizons. Readers learn how moving averages can serve as dynamic support and resistance, how crossovers are used to signal potential shifts, and why whipsaws occur in choppy markets. The discussion often expands to trendlines and channels, illustrating how to draw them consistently and how to interpret breaks and retests. Importantly, the book encourages readers to treat these tools as filters and frameworks rather than standalone buy and sell signals. For example, a moving average might define the trend context, while entries come from pullbacks, breakouts, or indicator confirmation. The practical value is learning to align trades with the dominant direction, which can improve odds and reduce the temptation to fight momentum. The topic also highlights the tradeoff between responsiveness and reliability, helping readers choose settings and rules that match their temperament.
Thirdly, Chart patterns, breakouts, and the discipline of confirmation, Chart patterns are one of the most recognizable elements of technical analysis, and this topic explains how to approach them without falling into pattern hunting. Schwager typically emphasizes what a pattern represents in terms of supply and demand, rather than memorizing names. Readers encounter common formations such as triangles, flags, head and shoulders, double tops and bottoms, and broader consolidation structures. The key lesson is that patterns become actionable when they define a clear boundary and a clear trigger, usually a breakout above resistance or below support. Equally important is learning to respect failure: false breakouts and failed patterns can be powerful information, but only if risk is controlled. The book usually explores confirmation techniques, such as waiting for a close beyond a level, observing volume behavior, or using follow through rules to reduce premature entries. It also helps readers think about measured moves, targets, and stop placement derived from the structure of the pattern. By focusing on rules and context, this topic guides beginners away from subjective chart doodling and toward consistent execution with defined entries, exits, and contingency plans.
Fourthly, Momentum oscillators, overbought oversold signals, and divergence, Beyond trend and pattern work, technicians often use indicators to gauge momentum, exhaustion, and the likelihood of continuation versus reversal. This topic introduces oscillators commonly used for that purpose, such as RSI, stochastics, and MACD, and explains what they are attempting to measure. A major educational point is that overbought and oversold readings do not automatically mean price must reverse. In strong trends, an instrument can remain overbought or oversold for extended periods, so signals must be interpreted within market context. The book typically teaches readers to look for indicator confirmation, including momentum shifts, signal line behavior, and especially divergence, where price makes a new extreme but the indicator does not. Divergence is framed as a warning sign, not a standalone trade, encouraging readers to combine it with break of support or resistance, trendline breaks, or pattern completion. The topic also addresses parameter selection and the risk of over optimization, stressing that indicator settings should be chosen for clarity and robustness rather than perfection on past data. The overall benefit is learning to use indicators to add timing and risk control to a broader trading plan.
Lastly, Risk management, trade planning, and building a repeatable method, A practical introduction to technical analysis is incomplete without risk management, because even good analysis fails if losses are uncontrolled. This topic focuses on how to translate chart based ideas into defined trades with position sizing, stops, and realistic expectations. Schwager is known for emphasizing discipline and the importance of limiting the impact of any single trade. Readers learn to define invalidation points based on market structure, such as a break back into a consolidation or below a key swing low, rather than arbitrary dollar amounts. The discussion commonly includes reward to risk thinking, managing trades with trailing stops or partial exits, and avoiding the psychological trap of moving stops to avoid being wrong. It also encourages traders to develop a coherent approach by combining tools: trend filters, entry triggers, confirmation, and exit rules. Another key element is the idea of testing and record keeping, whether through historical charts, paper trading, or systematic backtesting, to understand how a method behaves across different market environments. The outcome is a framework that supports consistency, reduces emotional decision making, and helps traders survive long enough for skill and edge to compound.
- Amazon USA Store: https://www.amazon.com/dp/0471295426?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Getting-Started-in-Technical-Analysis-Jack-D-Schwager.html
- Apple Books: https://books.apple.com/us/audiobook/technical-fundamental-analysis-for-beginners-2-in-1/id1683353043?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Getting+Started+in+Technical+Analysis+Jack+D+Schwager+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0471295426/
#technicalanalysis #chartpatterns #trendfollowing #movingaverages #riskmanagement #GettingStartedinTechnicalAnalysis
These are takeaways from this book.
Firstly, The logic of chart reading and market structure, A central focus of an introductory technical analysis guide is explaining why price charts can be useful in the first place. Schwager frames technical analysis as the study of market behavior expressed through price, volume, and time, translating crowd psychology into observable patterns. Readers learn the foundational vocabulary of trends, ranges, and turning points, including how markets shift from accumulation to markup, then distribution and decline. The topic typically covers the practical meaning of support and resistance, why prior highs and lows matter, and how traders interpret breakouts, pullbacks, and failed moves. This foundation helps readers stop treating charts as art and start treating them as structured evidence. It also clarifies an important nuance: technical analysis is probabilistic, not predictive. A pattern or level does not guarantee an outcome, but it can define a trade idea with clear invalidation. By connecting chart structure to decision making, the book positions chart reading as a way to organize uncertainty, avoid random entries, and develop repeatable methods that can be applied across stocks, futures, currencies, or other liquid markets.
Secondly, Trend identification tools and moving average frameworks, Many beginners struggle with a simple question: is the market trending or not. This topic explains common ways technicians classify trend direction and strength, using tools that reduce noise while staying responsive to changes. Moving averages are typically introduced as a core technique, with attention to how different lookback lengths suit different trading horizons. Readers learn how moving averages can serve as dynamic support and resistance, how crossovers are used to signal potential shifts, and why whipsaws occur in choppy markets. The discussion often expands to trendlines and channels, illustrating how to draw them consistently and how to interpret breaks and retests. Importantly, the book encourages readers to treat these tools as filters and frameworks rather than standalone buy and sell signals. For example, a moving average might define the trend context, while entries come from pullbacks, breakouts, or indicator confirmation. The practical value is learning to align trades with the dominant direction, which can improve odds and reduce the temptation to fight momentum. The topic also highlights the tradeoff between responsiveness and reliability, helping readers choose settings and rules that match their temperament.
Thirdly, Chart patterns, breakouts, and the discipline of confirmation, Chart patterns are one of the most recognizable elements of technical analysis, and this topic explains how to approach them without falling into pattern hunting. Schwager typically emphasizes what a pattern represents in terms of supply and demand, rather than memorizing names. Readers encounter common formations such as triangles, flags, head and shoulders, double tops and bottoms, and broader consolidation structures. The key lesson is that patterns become actionable when they define a clear boundary and a clear trigger, usually a breakout above resistance or below support. Equally important is learning to respect failure: false breakouts and failed patterns can be powerful information, but only if risk is controlled. The book usually explores confirmation techniques, such as waiting for a close beyond a level, observing volume behavior, or using follow through rules to reduce premature entries. It also helps readers think about measured moves, targets, and stop placement derived from the structure of the pattern. By focusing on rules and context, this topic guides beginners away from subjective chart doodling and toward consistent execution with defined entries, exits, and contingency plans.
Fourthly, Momentum oscillators, overbought oversold signals, and divergence, Beyond trend and pattern work, technicians often use indicators to gauge momentum, exhaustion, and the likelihood of continuation versus reversal. This topic introduces oscillators commonly used for that purpose, such as RSI, stochastics, and MACD, and explains what they are attempting to measure. A major educational point is that overbought and oversold readings do not automatically mean price must reverse. In strong trends, an instrument can remain overbought or oversold for extended periods, so signals must be interpreted within market context. The book typically teaches readers to look for indicator confirmation, including momentum shifts, signal line behavior, and especially divergence, where price makes a new extreme but the indicator does not. Divergence is framed as a warning sign, not a standalone trade, encouraging readers to combine it with break of support or resistance, trendline breaks, or pattern completion. The topic also addresses parameter selection and the risk of over optimization, stressing that indicator settings should be chosen for clarity and robustness rather than perfection on past data. The overall benefit is learning to use indicators to add timing and risk control to a broader trading plan.
Lastly, Risk management, trade planning, and building a repeatable method, A practical introduction to technical analysis is incomplete without risk management, because even good analysis fails if losses are uncontrolled. This topic focuses on how to translate chart based ideas into defined trades with position sizing, stops, and realistic expectations. Schwager is known for emphasizing discipline and the importance of limiting the impact of any single trade. Readers learn to define invalidation points based on market structure, such as a break back into a consolidation or below a key swing low, rather than arbitrary dollar amounts. The discussion commonly includes reward to risk thinking, managing trades with trailing stops or partial exits, and avoiding the psychological trap of moving stops to avoid being wrong. It also encourages traders to develop a coherent approach by combining tools: trend filters, entry triggers, confirmation, and exit rules. Another key element is the idea of testing and record keeping, whether through historical charts, paper trading, or systematic backtesting, to understand how a method behaves across different market environments. The outcome is a framework that supports consistency, reduces emotional decision making, and helps traders survive long enough for skill and edge to compound.
