Investor's
Library 
Review of Schwager on Futures: Technical Analysis by Jack Shwager
Jack Schwager, of "Market Wizards" fame, wrote what I sincerely feel will come to be regarded as the most outstanding book on technical analysis of the decade between 1986 an 1996. I would venture to say that Schwager's work, Shwager on Futures: Technical Analysis, is not only the best book on the subject since John Murphy's ground-breaking Technical Analysis of the Futures Market, but it likely eclipses anything since then.
Why am I so enthusiastic about this book? First, I feel that any writing or research project that Schwager undertakes would be of excellent quality (based on my more-than-20 years reading his output), and I wouldn't have hesitated to recommend it, sight unseen. He is a superlative writer who possesses the ability to convey to the reader the benefit of his vast experience in and knowledge of the markets in such a "user-friendly" and non-technical way that virtually every reader, from the newest beginner to the market veteran, will find this book of value.
First, it is clearly written, well organized, thoroughly comprehensive and eminently practical. Second, this book is exceptionally useful in that it blends the teaching of the theory of technical analysis with a practical viewpoint to applying the concepts to real time trading. It is written throughout from the perspective, not only of the technical analyst, but also the trader. A major focus of the book is on teaching and illustrating what does work and, equally important, what doesn't work in the real world of daily trading.
Third, this book is a great value.
It was originally slated to be approximately 400 pages, but Schwager's zeal to make this the most comprehensive text available resulted in the final product "clocking in" near the 800-page mark. Schwager produces quality material in great quantity in this book, and the purchaser is the benefactor. Another benefit is a workbook and study guide (available separately), which helps you master the material in the main text.
Although the sheer scope of this monumental work precludes giving detailed analysis of the contents, a brief treatment is in order. The book consists of five major sections (24 chapters). Each section is so comprehensive in its own subject area that each could easily be published as a stand-alone book in its own right, making this the equivalent of five books in one.
The first section is an extraordinarily well-done treatment of every aspect of chart analysis imaginable. The second deals with "real world" chart analysis, showing many examples of trading recommendations made in the past, revealing the reasoning for entering and exiting the trade, describing how the trade worked out and providing valuable vicarious trading experience. A diary of lessons to be learned from all the illustrated trades is a valuable addition.
The third section provides a thorough education in oscillators and cycle analysis. This section is guest-authored by Tom Bierovic and Richard Mogey (former President of the Foundation for the Study of Cycles).
The next section is on trading systems -- an area of special expertise for Schwager. This contains everything you might ever want to know about the subject. One chapter provides three of Schwager's own proprietary systems, which would typically cost 200 - 500 dollars each.
The final section is on issues of trading, such as the "nuts and bolts" of planning a trading routine, 82 rules for traders and a new chapter on "Market Wizardom", or what we can learn from eminently successful traders.
The only major topics omitted are Gann and Elliott analysis, which Schwager considers "specialized topics", and which he doesn't use in his own analysis. Though written from the standpoint of futures trading, this book will prove valuable to stock and options traders as well.
Shortcomings? Couldn't find 'em. Superlatives? Can't think of enough of 'em. This is not just "another" book on technical analysis, it is The Book. It carries my highest recommendation.
Edward Dobson, President
Traders Press, Inc.
Greenville, SC
Note: This review was originally written when this book was published in 1995. While there have been a number of outstanding new books on technical analysis published since then, this book still stands out as one of the best ever published. The table of contents, which is extremely detailed, is available at the following link: https://www.traderspress.com/detail.php?PKey=480
