Book Review: George Lindsay and the Art of Technical Analysis

I was recently given the opportunity to pick up a copy of George Lindsay and the Art of Technical Analysis, written by Ed Carlson. I was attracted to it by the reported quality of George Lindsay’s market analysis, though he’s not someone with which I was familiar prior to reading the book. He was a bit before my time in terms of when I started following the markets. :-)

This book comprises a couple of primary parts. The first is a brief biography of Lindsay. It’s not particularly lengthy, however, as apparently Lindsay wasn’t someone well known on a personal level. He is known for his stock market newsletter writing back during the 1960s and 1970s. His market calls were apparently so good that key market followers of the time praised him very highly.

After the bio, the book gets into the featured technique of Lindsay’s – the Three Peaks and a Domed House chart formation. The author lays that out over four chapters. Although Lindsay didn’t really leave behind any singular technical manual type of explanation of the pattern, the author (Carlson) does do a pretty good job of teasing out the specifics from his writings on the subject.

The next part of the book covers The Lindsay Timing Model. This the application of “counts” to project market turning points. We’re not talking cycles here. It’s not about consistently repeating patterns, but rather taking a recently completed chart pattern and using it as the basis for a projection of a trend move timing.

The final section extends the counting element and brings in intervals and cycles. It also provides some case study evidence.

Now, it should be noted that the patterns and counts and whatnot discussed in the book are not short-term in nature. They are mainly based on daily bars and can take quite a while to unfold. For example, Three Peaks and a Domed House is a daily chart pattern which takes months to play out, though there are elements of it which could be traded along the way in slightly shorter-term ways.

Overall, I found the Lindsay work interesting. Readers familiar with Elliott Wave analysis will see some of those elements in the patterns described in the book. I would have liked to have seen more in the way of real world examples, particularly more modern ones. For someone interested in studying price action, however, this book could provide quite a bit of inspiration for research.

Make sure to check out all my trading book reviews.

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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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