7 Chart Patterns plots a tantalising theory that suggests technical analysis is much more effective than fundamentals (although many successful fund managers and investors may disagree and say that a balance of the two should deliver bigger and better returns). From the moment the author, Ed Downs, sets off he manages to cut to the chase, delivering basic, straightforward rules for watching chart patterns, highlighting the seven most potent, consistent patterns which will deliver their targets, regardless of which end of the professional scale of investing you may find yourself in.

Downs demonstrates simple methods for determining market direction and recognising winning patterns with money management techniques whilst relying on a certain level of naivety in the reader. Therefore if you are setting out to learn the quantitative traits of financial markets only, have never come across fundamental analysis or have no desire to use or consider using a balanced, combination of the two, this book should be a priority, even if it's for a quick musing.

However, whilst delivering the basics that's as far as the analysis goes, sometimes leaving the reader a touch frustrated. Much of the dialogue seems rather 'forced' in places as if you are being preached to rather than reading an educational textbook or guide (or company marketing sales aid some may feel judging on the advertisements towards the end).

I agree whole-heartedly with Downs on one thing however: this book is simple but gets right to the point, and that's the most important thing. If you master his simple techniques and use good money management you should be on the way to becoming a successful trader (successful being the key word). But to say that ignoring fundamental analysis altogether is the way to go, may be one step too far.

It would be a true statement to say that many traders would want you to feel what they do is far more sophisticated than this simple, yet effective, narrative portrays. But it doesn't always have to be and that's the point Downs is trying to get across. For those investors who have a true understanding of the importance of fundamental company and market research this book isn't likely to change their mind, but may open it a touch. What Down's is trying to say is don't stray far from the basics, which ever method you'll favour after this little jaunt.

Reviewed by Chris Burrows