Technical analysis is the most critical aspect of Forex trading in the market. Unlike fundamental analysis, which requires an in-depth study of financial statements of a company profile, it only needs analyzing charts. As a result, technical analysis can be used by almost all traders, i.e., beginners, advanced, day traders, or long-term investors That’s all you can learn from the Technical Analysis Books.
An excellent way to learn is by reading books and write-ups by successful investors. Unfortunately, while there are dozens of books on the same, covering topics like trading system development, crown psychology, and chart patterns, most of these complex topics are either too difficult, outdated, or not relevant to the users.
Here, we’ll share the top 5 technical analysis masterpieces that have become timeless due to the high-quality content. Please read all of them and become a pro trader yourself.
Best Technical Analysis Books
Technical Analysis of the Financial Markets
The most basic and the best book on technical analysis is the one written by John Murphy. The book is many times regarded as the bible of technical analysis and covers. The latest advancements in tools, indicators, and computer technology. The writer, John, is a former technical analyst of CNBC and has more than 40 years of experience in a similar market. The book provides an adequate level of detailed and actionable insights, and Murphy has described all the complex topics in a comfortable, understandable manner.
The publishing is best for beginners, covering all the initial topics, including stock rotation and inter-market relationships.
Japanese Candlestick Charting Techniques
The book is the first and the best write-up on one of the most popular analysis tools, candlesticks. The publishing by Steve Nison introduced technical analysis to the world.
Steve further popularized the technique, training people in the west, including investment traders and analysts at banks. Japanese Candlestick Charting Techniques also cover all the candlesticks available today, explaining each of them individually. The language is easy to understand and contains several examples to understand the technical tool deeply.
Encyclopedia of Chart Patterns
As the name suggests, the book by Thomas Bulkowski is truly an encyclopedia of charts and patterns. It includes a list of technical analysis patterns and charts, their performance history, and their capability to forecast future prices. The latest version takes it a step further by adding an extra section on patterns created on the price line after news releases.
The write-up sets itself apart from authors that describe charts. Also, how to spot them through their statistical and technical analysis. Further, it contains every pattern’s confirmation signals and preconditions and explains the probability of success in each chart, describing the failure to success ratios.
The book also has a section describing Day trading.
Getting Started in Technical Analysis
Another beginner’s book is “Getting Started in Technical Analysis” by Jack Schwager. The publishing includes everything related to technical analysis, from charts, patterns, indicators, and strategies to guides & plans to predict entry-exit points and trade successfully in the market.
Apart from it, the write-ups explain topics like charts, ranges, and trends and also contain examples to solidify the foundation. Notably, the methods and mechanics of order management in exit, entry, stop losses, etc., are also described.
How to make money in stocks
The publishing by a popular stockbroker (InvestFW) and entrepreneur William O’Neill is one of the best classics on share market technical analysis. The write-up is the gist of past data and results from research of the previous 100 years of the stock market. The method, CANSLIM, became a sensation and was widely used by investors, traders, and other financial managers. Apart from it, the publishing also includes techniques to earn money despite the market situation and contains several examples to make it easy to understand.
The book’s writer, William O’Neill, was also the founder of the popular financial investment publication Business Daily, useful for investors globally.
These were the best technical analysis books globally for traders. Of course, there are many other technical analysis books in the market too, but out of them, the above ones are one of the best. However, if some other book strikes you better, then read that too. In the next chapter, we’ll study how to use these technical analysis tools in the market.