In this era, investors can obtain a lot of resources from the Internet in order to improve their trading techniques. However, compared with Internet resources, technical analysis books can bring more intellectual energy, especially for new traders.
Why do we say that?
The uniqueness of technical analysis is that it focuses on price trends to predict future trends instead of the study of the platform’s financial condition, industry status, or other information. Regardless of novice traders or those who have many years of trading experience, it is essential to constantly replenish technical knowledge. Other than the overloading information on the Internet, professional analysis books have been researched and written by experienced traders. Therefore, reading these books and learning skills of technical analysis from experienced traders is one of the most effective ways to guide green hands.
Certainly, it is difficult to say which book is the best trading analysis book as every reader gets different “nutrition” and “cognition” from the book. Not everything in every book will meet one’s trading demands, and not all information will be helpful to his/her trading techniques.
For this reason, we will list the 20 most popular analysis books among traders, hoping to help you select the suitable one, build up the trading strategy and elevate the trading skills.
Table of Contents
The Best Technical Analysis Books and Chart Analysis Books
1. Getting Started in Technical Analysis
by Jack D. Schwager
In this quick start guide, the mystery of technical analysis is unveiled for beginners. Jack Schwager gives a clear explanation of basic knowledge such as trends, trading ranges, chart patterns, stop-loss, entry and exit points, and pyramid methods.
A large number of examples and explicit explanations help to establish a solid framework, which is easier to understand for new traders who have learned technical analysis for the first time.
2. Technical Analysis for Dummies
by Barbara Rockefeller
The author of this book, Barbara Rockefeller, is an international economist, a trader, even a newspaper publisher. Owing to more than 20 years of experience in the financial industry, she has a keen insight into both technical analysis and fundamental analysis.
Besides the basic concepts of technical analysis, this book also covers market trend explanations, differences in trading and investment. Rockefeller also makes an analysis of the correlation between market behavior and charts; explains technical indicators, and how to use technical indicators, and so on. The author’s description allows novices to easily understand technical analysis. While for experienced traders, reading this book can gain a new knowledge system.
3. Technical Analysis Explained
by Martin Pring
Whether you’re trading cornerstone commodities or innovative investment products, observing how investors responded to past events through technical analysis is a key to forecasting when to buy and sell in the future.
This book illuminates how to maximize profits in complex markets by tailoring suitable technical analysis. It offers examples, tables, charts, and comments that reflect different situations in daily trading. What’s more, it combines the traditional theories and the new technologies to help traders improve their trading skills.
4. The Art and Science of Technical Analysis: Market Structure, Price Action, and Trading Strategies
by Adam Grimes
As a pioneering work, this book bridges the gap between market perceptions, technical analysis, and profitable trades. It explores how to use technical analysis to capture statistically validated patterns under certain types of market conditions to make profits.
It also reveals some trading tools and patterns and explains how to use them, such as Fibonacci analysis, and other trading settings. In addition, this article is written based on the extensive trading experience and skills of the author, a combination of the study of trader psychology and their learning curve. Consequently, it assists traders to build their trading styles and technical strategies.
5. Technical Analysis from A to Z
by Steve Achelis
Stephen Achelis is an investment analyst and a trader, as well as the founder of a trading software service provider.
The first part of this book aims at novice traders and mainly introduces some basic concepts of technical analysis. The second part explains technical analysis tools in an easy-to-understand way for experienced traders who have already used technical analysis.
In view of not many traders using technical analysis for their trades, Stephen hopes this book can improve traders’ knowledge of technical analysis and the ability to make profits with it.
6. Japanese Candlestick Charting Techniques
by Steve Nison
This book makes a detailed explanation from basic knowledge and pattern recognition to actual operations based on candlestick charts. Thus it promotes investors to quickly grasp the function of candlestick charts and lay a solid foundation for the proficient use of candlestick charts in future trading.
Equally important, it helps traders to directly identify candlestick signals and estimate whether the market trend is about to change. Through in-depth analysis of the practical utilization of candlestick charts, it gives the guiding principles for making trading decisions, widely favored by traders.
7. Encyclopedia of Chart Patterns
by Thomas N. Bulkowski
The Encyclopedia of Chart Patterns is excellent as Thomas N. Bulkowski is well known with extensive knowledge of chart patterns. This book contains his 30 years of experience in stock trading and is well worth reading.
It covers a very comprehensive technical chart pattern, explains almost every candlestick pattern that appeared. Additionally, Bulkowski provides data information to show how each pattern correctly predicts price movements in a bear or bull market.
8. Chart Patterns: After The Buy
by Thomas N. Bulkowski
Bulkowski examined over 43,000 chart patterns to discover what happens after buying the stock. His findings help traders determine better buy signals, avoid economic disaster, and make more profits.
He analyzed thousands of trades to identify common paths a stock takes after the breakout from a chart pattern. By combining those paths, he discovered typical routes the stock takes, which he calls configurations. In the hope that they can avoid potential risks and focus on making good returns, traders will match the chart to one of those configurations. Therefore they will know how the trade is about to perform before buying.
9. Technical Analysis Using Multiple Timeframes
by Brian Shannon
The technical analysis gets advanced here as this book begins to reveal the market structure and psychology.
A great advantage of this book is that no matter what kind of technical trading strategy a trader applies, he can get beneficial help from this book. Shannon mainly elaborates on how to maximize profit with technical analysis in multiple periods. The topics in the book include but not limited to short selling, setting stop-loss orders, and locate the best exit point.
10. Technical Analysis for the Trading Professional, Second Edition: Strategies and Techniques for Today’s Turbulent Global Financial Markets
by Connie Brown
The previous books listed mainly focus on the theories and conceptions. However, this book will target more advanced trading techniques and indexes, including Relative Strength Index(RSI), Gann analysis, Fibonacci sequence and Elliott Wave Theory, and so on.
The comprehension of these techniques enables traders to picture market objectives even in the most extreme and volatile market conditions.
11. Investment Psychology Explained: Classic Strategies to Beat the Markets
by Martin Pring
Investment Psychology Explained tells traders how to overcome emotional and psychological impediments in decision making, when to revolt against group opinion and go against the trend, what a great investor should do.
This book will help to renew your comprehension of the classic trading theories, which are effective in both the bull and bear market. The plenty of examples will help you become a good trader and achieve great benefit in the trading market.
12. Breakthroughs in Technical Analysis: New Thinking From the World’s Top Minds
by David Keller
As a technical analysis expert at Bloomberg L.P. and the chairman of the New York region of the Association of Market Technicians, Keller has held many seminars in North America to discuss how to apply technical strategies to the stock, commodity, and foreign exchange markets.
With such great experience, Keller wrote this book to help traders build their trading methods depending on the market trends.
13. Market Wizards
by Jack D. Schwager
What separates the world’s top traders from the vast majority of unsuccessful investors? How do they act when faced with opportunities and failures?
Market Wizards is filled with anecdotes about trading experiences, stories of traders, interviews with financial experts. It is not only a must-listen for traders and professional financiers but also for anyone interested in learning more about how the financial world really works.
14. How to Make Money in Stocks
by William O’Neil
With the great foresight, innovation, and precise investing techniques, William O’ Neil left a profound impact on invoice traders and even experienced traders.
How to Make Money in Stocks provides proven techniques to help investors win at the increasing stock prices. It also gives tips on picking the best stocks and other investment products, pictures new charts and strategies to help traders avoid common mistakes when finding profitable trends.
15. The Little Book of Stock Market Cycles
by Jeffrey Hirsch
It’s hard to forecast market trends at a certain point, but the fact is that the stock market expresses clear and sometimes predictable patterns. Even though these patterns are not always reappeared, it’s proved that it has a strong cycling trend which investors should not neglect.
On the one hand, this book focuses on how to gain an unexpected profit by catching up with these specific stock market circles with hard historical evidence. On the other hand, it discusses long-term and short-term trends within the best trading ties in a given period.
16. Elliott Wave Principle: Key to Market Behavior
by Robert Prechter
As a form of technical analysis, the Elliott Wave Principle can help experienced financiers analyze market circles, predict future trends by figuring investors’ psychology, ups and downs of price, and so on.
It is an effective tool for predicting trends, whose main value is that it provides a context for market analysis. This context not only provides a basis for methodical thinking but also a correct judgment for the target position of the market and the development of the market outlook. In many cases, its accuracy in identifying and predicting market changes is almost unbelievable.
17. A Complete Guide To Volume Price Analysis
by Anna Coulling
With the huge volume in the market, advanced traders see the market reversal and good entry opportunities, even whether it will continue.
For investors, trading volume is more important than the price for two main reasons. In the first place, it shows the psychological level of traders; in the second place, it’s a good trading tool to identify or determine market trends.
18. Cloud Charts: Trading Success with the Ichimoku Technique
by David Beckett Linton
The Ichimoku Cloud is a popular and flexible indicator that shows safe support and resistance levels, momentum, and trend direction. It provides a clearer picture of price behavior at a glance and identifies the direction of the trend based on the crossing lines and the position of the price corresponding to these lines, as well as measures price momentum and signals of trading opportunities.
Chiefly, this book helps investors find the best entry and exit points with the help of Ichimoku Cloud, and identify market reversals.
19. The Definitive Guide to Point and Figure
by Jeremy du Plessis
Point and Figure charting methods are some of the great technical analyses, however, they are sometimes overlooked by investors.
Combined with new trading techniques, it unveiled the mystery of Point and Figure charting. This book covers the makeup of chart patterns, explains the birth, and analyzes the theory. At the same time, it gives a full discussion of the gaps between the Point and Figure charting. More than that, it indicates how to apply indicators on a chart to help trade.
20. The Encyclopedia Of Technical Market Indicators
by Robert W. Colby
Technical analysis has become an excellent trading tool in measuring market strength and predicting market trends. Including such numerous technical indicators, it would be hard for some traders to select the most suitable and effective one.
No worry, the Encyclopedia lists the most widely used indicators and states how to use them in daily trading, thus investors could choose their preferences by reading this book.
After reading through these books, you will master the basic trading skills of building trading strategies, then become a profitable trader.
What’s more, trading techniques require constant trial and error and practice. For the purpose of ensuring a good return in this turbulent market, traders need to continuously make technical analyses, optimize trading strategies.
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