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The Art and Science of Technical Analysis: Market Structure, Price Action, and Trading Strategies

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A breakthrough trading book that provides powerful insights on profitable technical patterns and strategies The Art and Science of Technical Analysis is a groundbreaking work that bridges the gaps between the academic view of markets, technical analysis, and profitable trading. The book explores why randomness prevails in markets most, but not all, of the time and how technical analysis can be used to capture statistically validated patterns in certain types of market conditions. The belief of the book is that buying and selling pressure causes patterns in prices, but that these technical patterns are only effective in the presence of true buying/selling imbalance. The Art and Science of Technical Analysis is supported by extensive statistical analysis of the markets, which will debunk some tools and patterns such as Fibonacci analysis, and endorse other tools and trade setups. In addition, this reliable resource discusses trader psychology and trader learning curves based on the author's extensive experience as a trader and trainer of traders. Filled with in-depth insights and practical advice, The Art and Science of Technical Analysis will give you a realistic sense of how markets behave, when and how technical analysis works, and what it really takes to trade successfully.

480 pages, Hardcover

First published January 1, 2012

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About the author

Adam H. Grimes

3 books16 followers

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5 stars
147 (52%)
4 stars
88 (31%)
3 stars
30 (10%)
2 stars
12 (4%)
1 star
4 (1%)
Displaying 1 - 30 of 30 reviews
Profile Image for Terry Kim.
151 reviews10 followers
September 11, 2016
If 'Reminiscence of a Stock Operator' is a must read book for traders to gain insight into life of a very successful trader,
If 'Trading in the zone' - Mark Douglas is a must read book to learn the mental state of a successful trader, then this book is a must read for deep understanding of Technical Analysis.

What a great book. Like the title suggests this is a deep look into technical analysis. Many books suggest trading Pull Backs and Breakouts, but this book really breaks these terms down with tons of examples. There are variety of different pull backs, break outs (simple pull back, complex pull back, failure pull back.. etc etc), which this book goes through in fine detail.

This book has helped with my entries and trade management which ultimately is improving my confidence. Simply said its a must read and also a must re-read. I'll be re reading this book shortly as this book has all you need in terms of swing trading technical analysis! Highly recommended!
Profile Image for Arvind Balasubramaniam.
32 reviews8 followers
April 18, 2019
Adam Grimes demolishes TA misconceptions in this book, provides various insights on the nature of market structure and price action, talks about tools, the interfacing between different timeframes, ranges and trends and in incredible detail. He also provides insight into the psychology of market players who enter at different points of price action.
The technical tools section is not very strong although you'll get an idea of how to interpret MACD. I like his customisation of MACD although stochastic RSI could be uses instead to measure momentum rate changes.
This is a great TA gem once you've understood classical TA like Schabacher, Murphy etc.
Profile Image for Ilia.
32 reviews
March 18, 2021
Such a comprehensive book. It starts with the basics of market dynamics, constantly question 'common knowledge' and 'conventional wisdom', and provides as many examples of failures as such of success. Not only does it cover technical aspects and market dynamics, but it also covers such topics as trading psychology, cognitive biases, risk management, and so on. Definitely a must-read for every trader.
Profile Image for Josiah R.
63 reviews18 followers
April 27, 2016
A wonderful book. I checked this out from the library but would like to add it to my own collection now that I've read it once. Grimes is one of the few no-nonsense trading authors I've found, scientific in approach but still managing to be friendly to average trader who doesn't want to read a textbook. It is a heavier read than most because of somewhat denser material, but the extra effort will be very worth your while I think. This one deserves a place next to The Playbook and Trading in the Zone.
Profile Image for Kyhn.
4 reviews
January 14, 2021
New traders often jump to the indicator sea of the technical analysis and try to grasp outstanding results. After a while they think that they have to add some other tools, make some adjustments in the indicators and try to build perfect setup.

However, this is very difficult and without a good psycology, discipline, proper risk management and understanding the market structure it is almost impossible.

Before technical/mechanical system establishment, it is extremely crucial to understand how market works? What is price action? How market makers drive the price? What are the weak points of classical approaches and how can we find the edge in this wild environment?

All in all, here is my 2 cent: author clearly and in detailed ways explains all of them. The examples are sufficient enough to get the idea for an intermediate trader. I took many notes and study them like i was in school time. This book made my eyes open. I filled many gaps of my way of seeing the markets.

This book is highly advisable. However, for a beginner, it is way better to learn first the technical analysis details or beginner level trainings in forex etc. spend a lot of times in front of the charts, try to earn money in demo accounts. After that you will realize there should be further improvement and you will find it in this book.

Yes it consist of beginner level information but it might be tough to understand some details.
Profile Image for Natsoc Man.
12 reviews
July 12, 2022
My background is compsci and algo trading, but I needed a basic understanding of TA and what information is necessary for traditional trading. Grimes' approach is very pragmatic and minimalist: only make use of a couple indicators and chart patterns. Don't memorize 1000 candlestick patterns because ultimately you can resolve them to only about 4 different outcomes. Don't draw random lines on your chart, use only a few indicators wherein you actually know how they work, etc.

Grimes does however make a strong case that most TA is bullsh*t, and he is pretty convincing (for instance you can draw random lines on a chart and it looks like TA, or the belief in MAs being support or resistance when any random line could be used).

He gives the basic background of Wyckoff market cycles, and not much more is needed. He focuses mainly on simple trades from many examples. The last sections on risk statistics, determining whether a trader has an edge, and personal psychology provide a well-rounded outlook on what skills, knowledge, and habits are required to be a successful trader.
Profile Image for اروین رومل.
55 reviews1 follower
September 29, 2022
An easy read, though I loved the first pages (more about the trading itself and not technical analysis), other chapters were too basic and I didn't feel great reading them - though better than other books out there about technical analysis, going to read more from this author on his blog
I must add that I liked his minimal approach on trading, not lots of indicators and lines, etc. Maybe it wasn't fascinating cuze I do my best to have my own charts as minimal as possible and I don't draw too many paintings and everything, since I already implemented that I didn't find it new
One more thing that I liked was his emphasis on the ATR, again, cuze I use it on daily basis, that's not new to me but it's a great tool that Adam Grimes uses a lot and talks about it a lot, so that's a good point
I belive you should read it, but not in depth, just read it, get the key idea and that's enough
Profile Image for Chris Dziewa.
100 reviews
March 9, 2021
This was a really good book. I have learned a lot from Adam Grimes' free Market Life course. This book was particularly helpful in understanding some of the strategies presentef there as well as thinking holistically about the markets. Some of the statistics were hard to grasp as I am new to that realm of knowledge, but I really enjoy that Grimes uses a statistical approach to verify the long-term profitability of any strategy. At the end of the day, he does not suggest using a cookie cutter approach to trading, but gives readers the tools to start thinking about building their own strategies.
Profile Image for Dignesh Khunt.
8 reviews23 followers
December 13, 2020
it good book for beginners.. Guides different style of trading with example. my favourite chapter is moving average (special detailing about sma and ema). after reading this book, i conclude following part:
to become protrader, do this things
1. learn market cycles
2. make own system. and take note and paper check profite and loss ratio, % accuracy (more then 70% good)...
3. stick this system and think your are Robot not show what is profite just simple follow system.
1 review
May 3, 2023
If you're interested in the technical ins and outs of trading, this book and "Trading in the Zone" by Mark Douglas are the places to start. This book contains everything you need about technical levels and the mechanics of trading, but I suggest starting with the psychology of trading starting in chapter 11 first.
Profile Image for Joseph.
288 reviews24 followers
October 24, 2021
An excellent book that touches on the technical set up, risk management and the psychological aspect of trading

This book should be read by traders who have formed some trading styles. This will further complement one's style.
Profile Image for Othman.
263 reviews13 followers
September 6, 2022
2 important take-home points:
1) trading without an edge is a short way to big losses!
2) measure your performance so as to know (i) where you have messed up in your losing trades; (ii) and that your winning trades are not due to chance!
Profile Image for Manish Bhardwaj.
14 reviews1 follower
May 11, 2019
Good read for TA. Book focuses mainly on type of trades pullbacks & failure &. Many others.
3 reviews
March 18, 2020
This is a great book for day traders. It focuses on the technical part of trading, and should be on the bookshelf of everyone wanting to learn more about the market.
Profile Image for econoMisfit.
258 reviews8 followers
October 20, 2020
An interesting read for someone who already have a basic understanding of stock market technicals.
Profile Image for Alpha.
10 reviews
December 6, 2022
The book is comprehensive and long. It is more like a textbook that you can refer to. I have finished 50%.
Sometimes the language can be a little convoluted and repetitive.
Profile Image for Chase.
2 reviews21 followers
July 2, 2021
This book can teach you everything you want to know about trading! Great alternative to a day trading course!! A+
Profile Image for Yu Feng Tan.
6 reviews1 follower
June 8, 2018
The good:
Highly relevant to technical Traders. Speaks about how to have a trading edge, four stages of market cycle, trading strategies using chart patterns, risk management and trade examples.

The bad:
I can’t think of any

Who is it for:
Technical Traders who want to know the science behind chart patterns and the thought process behind entries and exits. This book requires a reread to reinforce the concepts behind.

Profile Image for Amar.
76 reviews2 followers
August 7, 2019
Essential reading for anyone who trades professionally. Just some genuinely sensible and realistic material of what it takes to get ahead in this game; lays out the good and bad in great detail- far too many writers in this genre only focus on the former. Also refreshing not to come across the usual hubris and self-aggrandizement that one associates with those who dish-out advice on this subject.
26 reviews
November 7, 2018
Great book delivering a great amount of value. In-depth, detailed and easy to read. A must-have for every technical trader, especially swing trader.
16 reviews
July 28, 2019
Awesome. Very useful to clarify differences between market structure and trading patters. A lot of useful information about trading psychology, risk, etc. Recommended.
July 25, 2022
Complex and needs a lot of re-reads but makes a lot of sense!

Once mastered we can atleast start to read d markets wid some confidence!
Want to read
June 1, 2018
"This is a good reference for market structure and reading charts, but also an in-depth trading analysis, covering both technical and psychological aspects, with detailed examples. Grimes talks about forming and using an edge in the market and the importance of discipline to trade that edge. He recommends tools for entries and exits, and gives tips for developing trading strategies by analyzing market conditions."
Displaying 1 - 30 of 30 reviews

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