Making money in the stock market is no mean feat. Any novice trader knows the perils of finding a method that has stood the test of time. And while no holy grail may exist, technical analysis has a lot to offer.
Technical analysis is a broad category of stock market analysis designed to forecast future share price movements.
It can be as simple as looking at price and volume movements or as complex as fractal analysis.
The topic is so vast that it is hard to know where to begin, which is why we compiled a list of the best technical analysis books to help you accelerate your quest to identify a trading strategy that works well for you.
1. Technical Analysis of the Financial Markets
Among the very best technical analysis books is John Murphy’s classic, called Technical Analysis of the Financial Markets.
John Murphy is one of the most renowned technical analysts. He has appeared on Bloomberg, CNBC, and CNN as well as many other financial TV shows, and is the face of StockCharts.com, a financial information site featuring technical analysis tools.
Technical Analysis of the Financial Markets is the gold standard of technical analysis books. It is perhaps the most comprehensive book of its kind.
Unlike some other books, it is not too wordy yet at the same time it’s a complete resource.
You won’t simply discover technical analysis concepts, you will also discover their applications to futures and stock markets.
From technical tools and indicators to computer technology, the book covers all the essentials needed to objectively analyze stock charts.
You will learn about Japanese Candlesticks, intermarket relationships, and the rotation of stocks among many other topics.
So, whether you are looking to perform stock technical analysis or bitcoin technical analysis, you will have the tools you need to make more informed decisions.
What You Will Learn
Just a sampling of what you will learn in John Murphy’s Technical Analysis of the Financial Markets is shown below:
|Basic Concepts of Trends|
|Major Reversal Patterns|
|Volume & Open Interest|
|Long Term Charts|
|Oscillators & Contrary Opinion|
|Point & Figure Charting|
|Elliott Wave Theory|
|Computers & Trading Systems|
|Money Management & Trading Tactics|
|The Link Between Stocks and Futures|
|Stock Market Indicators|
|Advanced Technical Indicators|
2. Charting & Technical Analysis
What distinguishes Charting & Technical Analysis from many other technical analysis books is the in-depth focus on who is buying and who is selling.
Fred McAllen’s book doesn’t simply spotlight charts with 20/20 hindsight perspective about where optimal buy and sell points are but goes further to explain how to identify when tops and bottoms are forming.
The clear focus of the book is empowering traders with knowledge to make more informed trading decisions.
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Even if you are not an active trader but invest in mutual funds, the book is a valuable.
You will learn about the tricks of financial advisors and salespersons to earn commissions from mutual funds and how advancing your own knowledge can be a money-saver.
If you have been struggling to decipher and analyze stock charts, this book is a virtual must-read.
What You Will Learn
|Saucers and Spikes|
|Flags & Pennants|
|The Key Reversal Day|
|The Interpretation of Volume|
|Short & Long-term Views|
3 – How To Day Trade For A Living
How To Day Trade For a Living is a fascinating book not only in the knowledge it imparts but also because of the compelling narrative that led Andrew Aziz to write it.
Aziz had a PhD in Chemical Engineering from the University of British Columbia but despite his qualifications he was informed during the stock market crash of 2009 that he was no longer needed as an employee.