I have read many books from the library on charts, but this is book is the one which it is essential to own - even more so than Edwards & MaGee ! One of the main dangers with charting is imagination - trying so hard to see patterns that you stretch the chart to fit what you would like to see. Bulkowski has analysed chart patterns using a computer, which means that he had to define the patterns with complete clarity. For each pattern he has a full definition which will leave you in no doubt as to whether your stock chart fits the pattern or not. If it does then he has precise statistics as to how often it works or fails, and Trading Tactics listing the various ways of using such a pattern once you have found it. This is far cry from all other charting books I have seen. For example, O'Neil's book 'How to make money in Stocks' makes much of the cup-and-handle formation, but I always found that his definition, spread over several pages, and his examples difficult to translate into reality. Bulkowski shows why - one of O'Neil's examples doesn't actually fit O'Neil's own definition. Bulkowski has therefore had to define the formation more precisely and then the statistics apply to this, more precise, definition. If you are new to charting then Edwards & MaGee is a good start, but R.Schabacker 'Technical Analysis and Stock Market Profits' (the book from which E & M drew their material) is better. Once you have taking charting on board then you will want to refer to Bulkowski's book over and over again.
