Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment
By Boris Schlossberg
John Wiley & Sons Inc.
212 pages, $60
REVIEWED BY LESLIE N. MASONSON
There are numerous bar chart examples that are easy-to-read and illustrate his points well. Schlossberg covers the most common technical analysis tools, including: trendlines, moving averages, ADX/DMI, Bollinger Bands, stochastics, RSI, MACD and CCI. He presents two chapters on Fibonacci numbers and retracement, double and triple tops and bottoms, flags and pennants, triangle, wedges and diamonds, and regular and inverse head-and-shoulders patterns.
Schlossberg provides insight on a unique method of Bollinger Bands to take advantage of trends. Price charts are plotted with two sets of Bollinger Bands — with one and two standard deviation bands on the same chart. Thus, there are four bands, instead of two, which would be more typical.
Trading setups are analyzed in a separate chapter, using a straightforward approach. Schlossberg covers trend trading with Bollinger Bands, trend detection/exhaustion, volatility stops, scalping, using the MACD, RSI and moving averages. The book includes a useful 20-page glossary of terms.
In one of the most interesting chapters, “Know Yourself, Know Your Setup,” Schlossberg looks at the key information a trader should understand about his or her risk tolerance. He provides a seven-question quiz so the reader can uncover his trading profile. The book is easy to understand with clear explanations buttressed by numerous charts. Schlossberg has compiled a useful guide for beginners on how to use technical tools to trade forex.
Leslie N. Masonson is president of Cash Management Resources, a financial consulting firm, and author of All About Market Timing and Day Trading on the Edge. E-mail: