Tony Plummer

"In today's high-tech trading world, it's sometimes difficult to remember what moves markets. It's not computers, fractals or neural networks. It's people - people who make decisions based on their own abilities, emotions and financial resources." "But people do not make decisions in isolation. They are influenced by friends, colleagues and the news media. In the end, most individuals become part of a crowd. That's why so few people make money in the markets; because, as every top trader knows, the crowd always loses in the end." "Winning requires the ability to recognize what the crowd is doing, and to do the opposite. If you develop this one ability alone, your success in the market is virtually assured." "In this completely revised edition of Forecasting Financial Markets - re-titled more aptly The Psychology of Technical Analysis - Tony Plummer demonstrates how to use technical analysis to track crowd psychology and to spot those exciting trades where enormous profits can be made." "Using a variety of technical approaches, Mr. Plummer shows how prices follow a discernible pattern, based on the predictable influence of the crowd. This pattern, which Mr. Plummer calls "THE PRICE PULSE" of the market, provides a workable model for describing how traders react to new, market-moving information." "Most importantly, Mr. Plummer shows how to determine what he calls "THE GOLDEN RATIO," a series of mathematically derived numbers which - together with the price pulse - enable a trader to forecast major tops and bottoms with nearly magical precision." "If this sounds too esoteric, consider the following:" "Between 1929 and 1932, the Dow Jones average fell 344 points. According to the Golden Ratio, that established an upside target of 1000. When 1000 was finally hit in 1965, it marked a 17-year turning point in the market!" "After bottoming out at 59.5 in June 1984, the U.S. Treasury bond futures embarked on an enormous rally, finally peaking at 105.5 in April 1987, almost exactly as the Golden Ratio had predicted!" "Between 1990 and 1992, a period of great volatility in the currency markets, the Golden Ratio forecast virtually every major top and bottom in the U.S. dollar/deutschemark market!" "In short, The Psychology of Technical Analysis is the bible for traders who want to understand the dynamics of crowd behavior and the financial markets, and who want to capitalize on those rare moves where really big profits can be made."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved

Profiting from Crowd Behavior and the Dynamics of Price

The Psychology of Technical Analysis

Forecasting Financial Markets provides a compelling insight into the psychology of trading behaviour and shows how "following the herd" can have disastrous results. It demonstrates how your ability to make money in the world's financial markets depends critically on your ability to make decisions independently of the crowd. Given the impact of the global credit crunch, it has become even more essential to be able to distinguish between short-term and longer-term trends at a time when panic selling and 'fire-sale' purchases are common. Forecasting Financial Markets details the three dimensions essential to achieve successful trading, including an ability to understand the forces at work in logical terms, recognize (and neutralize) any emotional responses to market fluctuations, and design an investment process or trading system that generates objective 'buy' or 'sell' signals. Taking the author's latest research into account, this important book provides you with an in-depth assessment of the phenomenon of cycles, patterns of economic and financial activity, and how to use cycles as a forecasting tool - including the author's forecasts for when the global economy will emerge from its current downturn.

The Psychology of Successful Investing

Forecasting Financial Markets

The Life Cycle Hypothesis provides evidence of an ordered process behind the apparent randomness of financial asset price movements, economic fluctuations, and social trends. It shows how genuine information will have a dramatic effect on any system into which it is inserted, and will generate reactions that are essentially pre-programmed. These reactions involve the processes of advance and decline, and therefore embrace a set of specific lower-order fluctuations. Financial and economic analysts have long been familiar with the resulting phenomena, but have had difficulty providing a satisfactory explanation. The Life Cycle Hypothesis builds on the findings of Tony Plummer's previous book, The Law of Vibration, and shows that nature itself contains the answer. There is a universal blueprint that manages growth, that organises evolution, and that contends with decline. In effect, the shock of fresh information creates a new organism whose energy travels along a natural pathway between birth and death. It is this pathway that generates such widely diverse phenomena as personal mid-life crises, the swarming of innovations, recurring patterns in financial markets, and rhythmic oscillations in national economies. It is this pathway that produced the Great Depression of the 1930s, the inflation trauma of the 1970s, and the global financial crisis of 2007-08. The same pathway now suggests that there may be a major global crisis in the early years of the next decade. The Life Cycle Hypothesis has the potential to change the way that we understand the world. It will therefore have a natural appeal for investors, economists, and social scientists. It will also be of great interest to those who sense a connection between the diverse social and political upheavals that are currently impacting us, and who want to understand the forces at work.

Groundbreaking new research into the regular rhythms and recurring patterns that underpin financial markets, the economy and human life

The Life Cycle Hypothesis

The ability to make money in financial markets depends most critically on an individual's ability to make decisions independent of the crowd, argues Plummer. He shows how to recognise crowd-influenced patterns and over-ride them.

Tony Plummer

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