Technical Analysis, the more we talk about the topic often seems less. Investors are aware of the significance this tool holds and as a matter of fact employ it before they make any trading related decisions, be it long term or short term investments.
Technical Analysis is a tool often employed by investors, traders to gain a deeper understanding of their investments and also help search for investment opportunities. Technical Analysis can be conducted to study, review, and predict the price movement, valuation of a stock.
The best part is an investor can carry out technical analysis on a number of financial instruments such as stocks, currency, commodities, derivatives to predict their performance after reviewing their trends from the past.
Yes, there are some of top-notch stock market courses out there, but it does not hurt to go through a few technical analysis books as well.
In this article, we list out 10 best technical analysis books that will surely prove fruitful for investors who are intent on learning about technical analysis which they can further employ to surpass the potential of their investments.
1. Technical Analysis from A to Z ｜Steven B. Achelis
Originally published in the year 1995, the financial teachings in the book stay relevant to the time. The book has been bisected in two parts. Part one is “Introduction To Technical Analysis” where the author gets to work on introducing the learner to the term and a brief detailing about its history.
Majorly Part 1 discusses all the topics that constitute the process of Technical Analysis such as Charts, Support & Resistance, Trends, Moving Averages, Oscillators, Market Indicators, etc.
The book provides detailed information on each topic and covers a remarkable 135 technical indicators through detailed examples.
2. Technical Analysis For Dummies｜Barbara Rockefeller
Barbara Rockefeller, Founder of the Rockefeller Treasury Services, in the year 2004 published this widely acclaimed book. The author does a fantastic job of simplifying such a complex topic to be brought into use by “dummies” to learn the fundamentals of Technical Analysis.
The book has been split into 7 parts and 19 chapters precisely, aimed at discussing various topics related to the whole process. The book will help an investor learn how to observe the market behavior, find patterns, and estimate volatility in the market.
3. Getting Started in Technical Analysis｜Jack D. Schwager
This should be the go-to book for a rookie trader intent on learning about the complex concept that technical analysis is.
Jack D. Schwager, a renowned trader wrote this masterpiece in 1999 targeted towards beginners who would like to master the technical aspect of the trading game.
Getting Started in Technical Analysis looks into topics such as chart patterns, trading ranges, price trends, various pyramiding approaches. What makes this book popular among learners is the fact that the book is equipped with ample examples, illustrations that have risen out of the author’s experience itself in the trading world.
4. Japanese Candlestick Charting Techniques ｜Steve Nison
The name reveals it all. The book Japanese Candlestick Charting Techniques authored by Steve Nison takes on the task of discussing this ancient technique used in Japan two centuries ago.
Upon the book’s arrival in 1991, it served the purpose of introducing the technique to the west. The vast popularity of the book brought the technique mainstream attention to the extent that it has today become the most popular of all charting techniques used for Technical Analysis.
The book through the medium of illustrations demonstrates how the technique can be employed across the various markets, sectors.
5. How To Make Money In Stocks｜William O’Neil
This gem by William O’Neil was published 32 years ago in the year 1988. The title of the book is followed by a tagline that reads “A Winning System in Good Times Or Bad” which is essentially what the book is all about.
The book literally turns an investor into a winner by helping them develop an understanding of all types of financial charts that will eventually come in handy while making investment decisions.
The biggest takeaway from the book, however, is the grand “CANSLIM” method which helps investors choose stocks wisely using a combination of various technical as well as fundamental analysis techniques.
6. Technical Analysis Explained｜Martin Pring
Technical Analysis by Martin Pring is an exemplary piece of work that helps a novice grow an understanding of the topics pertaining to technical analysis. The book originally published in 1980 has enjoyed 4 updates over all these years to include all the new advancements in the technique.
The book helps an investor learn about the individual indicators, price patterns, charts that help in predicting the performance of individual stocks.
Apart from discussing the above-mentioned topics, the book also has individual chapters on “Technical Analysis of International Stock Markets” – to help make foreign investments and “The Importance of Sentiment” – which casts light on how the sentiment of an investor dictates their trading choices.
7. Encyclopedia Of Chart Patterns｜Thomas Bulkowski
The book Encyclopedia of Chart Patterns stays true to its name and is a gamut of financial chart types. The reference book extensively covers all the financial chart patterns with examples, illustrations of how they operate in real life.
The book got published in 2000 and again got revised in the year 2005. The book in its current form today includes fresh statistics, 23 new chart patterns that ensure a learner gets access to the fresh matter and is well versed with all the advancements of recent times.
8. A Complete Guide To Volume Price Analysis｜Anna Coulling
“A Complete Guide To Volume Price Analysis” is the youngest on the list, with it being published in 2013. The author, Anna Coulling did an amazing job of presenting such a complex and all the more significant topic of Volume Price Analysis.
Volume can be thought of as an indicator of market strength and can be employed by investors to their cause. These often can be employed to predict the direction of the market, it could be upwards or downwards. The author discusses both the scenarios in depth in the book.
9. The Art And Science Of Technical Analysis｜Adam Grimes
The Art And Science of Technical Analysis by Adam Grimes reveals everything that an investor might need to become a professor of Technical Analysis. The book published in 2012 is loaded with fresh stats, data, chart patterns that will prove beneficial for an investor.
The book has 2 parts with the first part dedicated to helping a learner develop a fair understanding of Technical Analysis, while the second part focuses on market structure.
The latter includes dedicated chapters on trading patterns, trading analysis backed with all the stats that will help confirm the strategies that truly work in a certain situation. The book, a pioneer in the topic of unmasking a trader’s mindset, makes good use of accumulated data to better understand trader psychology.
10. Technical Analysis Of Financial Markets｜John Murphy
Technical Analysis of the Financial Markets” by John Murphy although was published back in 1986, received updates in 1999 to include all the new advancements of technologies, newer technical tools, and indicators to meet the needs of today’s time.
The author, boasting of over 40 years of experience as a technical analyst has written this book with special considerations for making complex topics as simple as possible. Learners who want to grow acquainted with the world of technical analysis should have this on their shelves as a must.
Technical Analysis is a significant tool that helps investors in choosing the stocks that meet their investment strategy. Investors need to learn factors such as price trends about the chosen stocks to make better investments.
Learning through books is the traditional method to grow familiarity with the topic, however, choosing the book that best delivers on that front could be a challenge. The books compiled in the list are the most reliable and widely accepted among the investor fraternity.
While books like Technical Analysis for Dummies, Technical Analysis from A to Z, Getting Started in Technical Analysis are more suited for traders who are just beginning on their trading journey and still learning their way around in the trading world.
In addition to reference books such as Encyclopedia of Chart Patterns, the list also features books for traders who already have some idea of the topic at hand. Steve Nison’s Japanese Candlesticks are strictly dedicated to the Japanese charting technique of Candlesticks.
But, one thing is for sure the books on the list are a sure-fire solution to the dilemma of technical analysis.
By the way, we also have an amazing review on some of the top fundamental analysis books for your reference. Feel free to check out.