Today I’ve finally finished reading Tom DeMark‘s The New Science of Technical Analysis. I’d say that it’s difficult to judge a book written by a living person with an almost legendary status in the world of financial trading. Despite the fact that the book was written more than 16 years ago, it’s still a generous source of the extremely useful insights on technical analysis. Tom tries to use a scientific approach in one of the most unscientific fields — financial trading, and does so rather successfully.
The book is quite long and it isn’t very easy to read. It includes many chart examples from all sorts of markets. I’ll try to list the theses voiced by DeMark in his work here:
The New Science of Technical Analysis is a great book. It’s an ultimate source of trading ideas and inspirational material. I recommend reading it because of the following advantages:
With all the pros, unfortunately, this book has its own cons too. Here’s a subjective list of disadvantages that prevented me from getting the usual pleasure of book reading:
Overall, it’s still an awesome book to read, even if difficult at times. It will help you sticking to the accurate analytical methods and will give you enough of the basic information to create your own methods of technical analysis. And once you get used to them, you’ll be able to trade successfully. If you plan to trade only Forex, you can skip some chapters to save yourself from Tom’s writing style.
If you have any questions, comments or opinions regarding The New Science of Technical Analysis by Thomas R. DeMark, please, feel free to reply in the comments below.
