Technical Analysis

Books about technical analysis may include the introductory books, the books on chart patterns, on specific indicators, on technical analysis theory, on alternative charting methods and others. Technical analysis is one of the most popular ways to research and predict the markets – that’s why it’s important to understand at least the basics of its methods.

Pring on Price Patterns by Martin Pring

Pring on Price Patterns is a book written by Martin Pring, which he calls a definitive guide to price pattern analysis and interpretation. The book starts off by offering some basic explanations — for example, why the patterns work at all. The author also introduces some supporting concepts that will help in pattern trading. Then Martin proceeds to the traditional patterns — such as the rectangles, triangles and head-and-shoulders, giving a lot of explanations. After that, the information about the short-term patterns composed just of 1–3 bars is given (inside bars, outside bars, reversal patterns, etc.). Finally, Pring offers some conclusive consideration regarding how to use those patterns best. This book can barely be called a super encyclopedia about patterns but it’s definitely a good guide to get yourself into chart pattern trading and become successful in this area.

Elliott Wave Principle by A.J. Frost and Robert Prechter

Elliott Wave Principle (Key To Market Behavior) is a book that covers the most misunderstood and yet the most powerful chart analysis technique — Elliott Wave theory. A.J. Frost and Robert Prechter did a great job by writing this book to introduce the concept of Elliott Waves and techniques that can use them in trading. The first half of the book is an explanation and description of what is Elliott Wave theory — how do they look like, of what parts are they composed, how different wave forms look like, what Elliott Wave patterns exist and why some are important and others aren’t. The second part of this book is dedicated to actual application of the described waves and their various forms in practice — and not only in trading! What’s so great about Elliott Waves is that they can be used in any market — stocks, Forex, futures, bonds — simply everything. It’s not a simple technique, there’s nothing easy in detecting and marking the waves correctly, but if used professionally, it can give you a significant advantage over other market participants.

Technical Analysis for Dummies by Barbara Rockefeller

Technical Analysis for Dummies (The Simple Way to Read Markets and Manage Investments Like a Pro) is yet another “… for Dummies” book on trading. It’s written by Barbara Rockefeller, who’s a terrific analyst and writer — she often writes for the Currency Trader Magazine and her articles never leave me indifferent. In this book not only does she introduces all the important technical analysis patterns but she also does an important job — Barbara tries to teach the reader of what technical analysis is in itself, how it can be used, why it should be used and what should be done for the technical analysis to work for the specific trader. Yes, of course, there are better books on technical analysis, but this one won’t promise you much — it will just help you to get into the world of technical analysis, which will be one of your best tools in trading.

Trade Chart Patterns Like the Pros by Suri Duddella

Trade Chart Patterns Like the Pros will teach any Forex trader (expert or newbie) when and how to trade using the bare charts, without any indicators or oscillators that are so popular among the pro-wannabes. The 65 chart patterns outlined in this book are all described in details with the real-life chart example to make the understanding easier for all types of traders. Of course, all Forex chart patterns fail sometimes but the point of this book is to show you what patterns to avoid and when to use them for their full profit potential. For each pattern, the entry and exit conditions are provided giving you a an extremely useful tool if you plan to create your own trading strategy from just reading this book. Traders of all experience levels and all financial markets will benefit from it.

Point and Figure Charting by Thomas J. Dorsey

“Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices” is a real holy grail for the point-and-figure Forex trader. The great advantage of this book is that the author dedicates a good part of it to explain the basics of point-and-figure charting thoroughly, so that a person without a slightest understanding of this charting technique would become fluent in point-and-figure methods of analysis, being able to plot such charts by hand and understand their fundamental background. From the technical analysis point of view the point-and-figure charts represent a completely new field for an effective forecast building. This methodology, which is detailedly described in the given book, allows building the leading indicators instead of the usual lagging technical indicators (like moving averages or MACD). I recommend this book to all categories of traders — newbies and professionals, technical analysts and fundamental analysts, scalpers and swing traders.

Technical Analysis of the Currency Market by Boris Schlossberg

Technical Analysis of the Currency Market is a book written by famous Forex market analyst Boris Schlossberg (he have been working for such industry giants as FXCM and GFT). The book is very easy to read, well structured and explains the most popular and basic techniques that can be used by almost any beginning trader. It won’t teach you how to become rich, it also can’t help yo if you are already an experienced Forex trader; but if you are relatively new to Forex and are longing to the technical trading, this e-book will allow you to master all the aspects of currency trading: charts, patterns, trends, ranges, Fibonacci, money management. The final chapter is a real cherry on top as it puts everything together and explains how to actually apply all the knowledge that is shared in the previous chapters.

Bollinger on Bollinger Bands by John Bollinger

Bollinger on  Bollinger Bands is  book written by  the creator of  one of  the greatest technical analysis tool (Bollinger Bands) — John Bollinger. He  created the method back in 1980s when he  was new to  the markets and financial trading and needed some tool that would fit his trading philosophy and wouldn’ t  lag much like so  many other popular technical indicators. This book is  a  self-study of  the developed indicator and the techniques that are based on  it.  John Bollinger is  the opponent of  the very popular trading myth of « buying low and selling high». Instead he  offers his own approach to  the trading philosophy and explains it  in  this book. Here you will find a  descriptive research of  this technical analysis tool, three simple trading system that employ the Bollinger Bands and new method to  confirm predictive chart patterns using multiple timeframes and moving averages.

Forex Wave Theory by James Bickford

Forex Wave Theory (A Technical Analysis for Spot and Futures Currency Traders) is a Forex technical analysis book about the wave cycles written by James L. Bickford. The purpose of this book is to answer the most important questions of the technical analysis — where and when. Where one wave starts and another finishes? Where are the critical points for setting of the stop-loss and take-profit levels? When is the right time to enter a position and when is the best time close it? Wave theory isn’t something fundamental and monolithic — there are many theories, many authors and many followers of different wave analysis practices. This book tries to research the most prominent of the theories and offer the practical methods of trading based on these theories. The wave cycles of various periods, length, and depth are described in details throughout the main part of the book. The final chapters are dedicated to the advanced parts of trading with the waves and dives into the theory of fractals.

New Trading Dimensions by Bill Williams

New Trading Dimensions is another book by the financial trading genius Bill Williams. Bringing the chaos theory into the trading is one of the most notable Bill’s ideas that have brought him success and allowed him to share his knowledge and techniques to make other financial traders succeed through these innovative and natural trading methods. This book explores the psychological abilities of every man and woman that allow succeeding in trading the currencies or in any other market, if the proper techniques are used. The non-linear methods proposed by Bill Williams offer a new approach to the technical analysis, which usually relies only on the straightforward liner and static analytical math. The good thing is that you don’t have to be a mathematical guru to understand everything presented in this book. All you have to do is to read it and apply the received knowledge in your actual trading.

Essential Technical Analysis by Leigh Stevens

Essential Technical Analysis is one of the many fundamental works on the technical analysis for the financial markets. This book probably won’t be very interesting to the experienced traders that already employ their own technical strategies and know a lot about the technical analysis from their own experience or from the knowledge earned before. But this book will definitely help to put a complete trading rookie on the hard rails of the technical analysis. Without going deep into describing and explaining every possible chart pattern, Leigh Stevens offers deep explanations of the basic principles of the technical analysis. All known problems, advantages, disadvantages, myths and other related facts a detailedly researched in this book.

Trading with the Odds by Cynthia Kase

Trading with the Odds is the untraditional view on the traditional technical analysis. The author offers a scientific approach to probability and statistics evaluation with the simplicity that makes it accessible by a common financial trader. This book proposes a new way to look at the markets — simultaneous views from the most important angles with the following compilation of the analysis results. The knowledge gained from this book will help you to replace empirical methods with mathematically derived models, manipulate the data to improve performance and to condense the information to improve your trading strategy further.

Encyclopedia of Chart Patterns by Thomas Bulkowski

Encyclopedia of Chart Patterns is indeed a great book, listing almost all possible technical analysis chart patterns with the detailed description for each pattern and the statistical background of its consequences. The total of 47 chart patterns are listed and explained on almost 700 pages of this trading ebook. If you like using technical analysis but often find yourself unprepared to react in an organized way on some of the patterns then this book will definitely help you. For each chart pattern its results snapshot, introductory information, identification guidelines, failures description, statistics, trading tactics and an example of a sample trade are presented.

New Trading Systems and Methods by Perry J. Kaufman

New Trading Systems and Methods by Perry J. Kaufman is a titanic trading study, which consists description of the every possible trading system and method. All those methods can be applied both to the stocks, commodities or the Forex market. It starts of with the regression analysis systems through cycle analysis, through point-and-figure charting to multi-timeframe and advanced systems. Not only several dozens of the trading techniques are thoroughly described in this book, there are also many useful tips and general information material that can help in the daily routine of the Forex trading. This book can be recommended to the professional trader and to the beginning traders as a desktop book as well. Despite this book being 10 years old already, it has a good portion of information regarding the new popular systems — like neural networks and those based on the fuzzy logic.

Trading Chaos by Bill Williams

Trading Chaos is one of the greatest trading books from one of the greatest writers and the leading theoretician of the dynamic trading — Bill Williams. If the only tools that you use to trade are the «linear» ones — like moving average, RSI, MACD etc. — then you will definitely revise your trading style after reading this book. Going from nature and its laws to market and its connection with natural laws, Bill Williams will lead you through 5 levels of trader’s proficiency and expertise. This book is worth reading even for tough and experienced traders who think that they know everything. New trader that starts from this book will encounter significantly less mistakes and problems during his practical course.

Candlesticks, Fibonacci and Chart Pattern Trading Tools by Robert Fischer and Jens Fischer

Candlesticks, Fibonacci and Chart Pattern Trading Tools reveals the strategy that according to the authors of this book is capable of improving trader’s performance, reducing his risk and increasing his profits. Trading tools are used with conjunction with many vital rules that are explained throughout the book. Any signal should be produced and executed with the extreme precision and accuracy. Not only the candlesticks, Fibonacci levels and various chart patterns should be considered valid systems, but other approaches may be added. One trading approach should be applied to more than 5 various trading products to reach the desired diversification level. Stop-loss, as well as the planned profit target, is a crucial part of any trading signal. A given trading approach should only be used in the appropriate market conditions.

A Complete Guide to Technical Trading Tactics by John L. Person

A Complete Guide to Technical Trading Tactics is a book dedicated to the less conventional trading indicators such as candlesticks, pivot points and pyramid approaches. It’s not limited with depicting only one strategy; instead it offers the set of loosely connected indicators, techniques and tips that can be used in any financial market — Forex, stocks, commodities etc. The information presented in this book will be found useful not only to the inexperienced or medium level traders, even professional traders will find something of interest and use there. John Person had more than two-decade experience in trading and brokerage when he wrote this book and he talked with many other successful traders during his career. He tried to include all the knowledge he collected into this work.

Trading with DiNapoli Levels by Joe DiNapoli

Trading with DiNapli Levels is a trading book by Joe DiNapoli that describes a certain complex technical indicator that he has invented and that is usually called DiNapoli levels. The whole indicator is based on the Fibonacci levels and is some way is just a method of application of the Fibonacci levels to the particular market conditions. This book will be more interesting to the investors or the long-term Forex traders as the indicator is best applied to the position trading rather than the intraday trading. Some knowledge of the technical analysis and the basic indicators is required to properly understand this book. But the method that is given here is explained very well. Knowing Fibonacci levels is a plus, but those are explained in this book too.

The New Technical Trader by Tushar S. Chande and Stanley Kroll

The New Technical Trader — this Forex book is about technical indicators. The financial markets change constantly, but the technical indicators remain, and they are still as powerful as they were years ago. The power behind the technical indicators presented in this book is the fundamental mathematics of complex dynamic systems — such as the Forex or other financial market. The indicators in this book are grouped in two main areas — methods of price analysis and methods of risk control (money management). All of the presented indicators are thoroughly described and explained. The authors use tutorials, examples, rules list and various tips for different markets as to how apply these indicators to maximize the technical trader’s performance. The trading system compilation is covered in the last chapter of this book, allowing reader to combine the indicators into one market machine.

Forecasting Profits Using Price and Time by Ed Gately

Forecasting Profits Using Price and Time — a Forex book that shows the way to set goals and targets for the price movement in the future to help to reduce the risks that every trader takes each time he enters an active position on the market. Taking a corrective action before a price moves against the trader is one of the main principles of avoiding losses. Confirmation of the predicted price movement is one of the steps required before entering a position. A probable movement can be forecasted using a technical analysis. Although this book can? t be considered a detailed study for the technical analysis, it shows and explains how to combine and use the simple methods of technical analysis to reduce risks and trade profitably on any market — Forex, stocks, futures, commodities or options. Neural networks are also discussed in application to trading.

Mastering Elliott Wave by Glenn Neely

Mastering Elliott Wave is, as its author claims, the first scientific, objective approach to market forecasting with Elliott Wave Theory. It’s really quite an impressive descriptive and research book that starts off with the most basic concepts of trading with Elliott Waves and finishes with a very complex and sometimes difficult to understand details that would interesting only to extremely advanced financial trader. Nevertheless Glenn Neely and Eric Hall (second author of this book) have done a lot for the popularization and explanation of the Elliott Wave Theory in trading with this piece of literature. In 1990 personal computers couldn’t perform fast technical analysis as they can now, so the book now contains a lot of math calculations that can be easily transferred to the custom automated indicators, but it’s still crucial to learn the inner mechanics of the Elliott Waves and that can be done by reading Mastering Elliott Wave.

Elite Trader’s Secrets by Rich Swannell

Elite Trader’s Secrets — a trading Forex book written by Rich Swannell, the recognized expert in the Elliot Waves techniques. The whole book is dedicated to the statistical analysis, verification, refining and improvement of the Elliot Wave principles. This situation results in a very powerful to tool, which allows traders to better utilize these methods in their trading. Until recent times Elliot Waves were considered to subjective to be used by the average trader. Different Elliot experts had different opinions about the same analyzed chart. The situation was so that the accurate forecast couldn’t be made at all using only Elliot Waves. Rich Swannell created a specialized network of computers; he fed it with the charts database and the every possible Elliot Wave pattern. The result was the statistical explanations of the Elliot Waves. The conclusions from this result are presented in his Forex book.

The New Science of Technical Analysis by Thomas R. DeMark

The New Science of Technical Analysis can be considered a bible for every financial trader that is using technical analysis. And Tom DeMark can be considered one of the leading experts in this field. So, it’s needless to say that this book is a must-read for everyone, who wants to get some real knowledge and skills in the field of technical analysis. Every possible aspect of technical analysis is described and explained in this trading book. The only thing that this book lack is the coverage of the rather new methods of technical analysis, such as Fibonacci numbers, chaos theory and other methods that were developed after The New Science has been already written. Nevertheless it’s a real masterpiece of the classical technical analysis literature that can be recommended both to the new and experienced traders — Forex, stocks or anything else related to the financial trading.

Beyond Technical Analysis: How to Develop and Implement a Winning Trading System by Tushar S. Chande

Beyond Technical Analysis is in its own way a unique Forex book. It doesn’t offer its readers some specific trading strategies or methods of technical analysis, or anything else of this type that can be found in many other books related to the financial trading. Beyond Technical Analysis shows traders how to create their own strategies based on the methods of technical analysis that work in Forex, futures and equities markets. This Forex book starts off with creating a trading system and ends with a picking a right system for the particular market and conditions. This book is recommended for the advanced traders as it will require some basic knowledge of the trading and familiarity with the trading software, for which the system is going to be developed. It includes the following chapters: developing and implementing trading systems, principles of trading system design, foundations of system design, developing new trading systems, developing trading system variations, equity curve analysis, ideas for money management, data scrambling and a system for trading.