Book Review – Number 4

Filed under: Learn Forex Trading |

For today’s book review in our series of ten, I will be looking at my fourth favorite forex-related book (from the ones in my modest collection anyway). This one is a little more specific to what we do on this website with regards to our “Daily Trades”, so this relevance pushes it into my top five. Here it is.

Number 4: “Martin Pring on Price Patterns” by Martin J. Pring

This book promises “The definitive guide to price pattern analysis and interpretation”. While these are big claims and I do not believe that it is the definitive guide, it does provide a very decent introduction to price pattern analysis, and strangely, there are not many of these kind of books about (conspiracy theory anybody?).

 

The book begins with the basics, which includes sections on market psychology, support and resistance zones, and trendlines. There is then an in-depth look at traditional western price patterns, such as the ‘head and shoulders’, ‘double tops’ and ‘double bottoms’, ‘triangles’, etc., before moving on to some shorter term patterns such as inside bars, outside bars, and pin bars, which are all derived from Japanese candlestick charting techniques.

 

The diagrams in the book are very clear and accessible (which is rare for a technical analysis book!), and it is easy enough to read through with its conversational tone. At the end of the book, there is an overview of some objective empirical research done on price patterns, and there are some results regarding probabilities of markets turns after certain price action signals. All in all, it is a useful addition to have on your bookshelf, and I’m sure you’ll come back to it more than once after reading it. That’s it for today, but I’ll be back tomorrow with my third favorite forex-related book – until then, happy trading.

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