Top 7 Best Technical Analysis Books


7 Best Technical Analysis Books: Technical analysis is the best thing a trader can do for short-term buying and selling. It is the most commonly used method used by spenders in the stock market. Moreover, the investors who are looking for long-term gains also need to go for technical analysis along with the fundamental research. Thus, if you are anyway sincere about trading or investing, you cannot underestimate the power of technical analysis.

Like any other skill or knowledge, we can learn about technical analysis by attending webinars, seminars, video tutorials, and courses. However, the best way is to read books. There are several books available in the market on technical analysis, concerning different aspects like psychology, patterns, strategies, etc. But what are the best ones? Here they are!

In this article, we would go deep into the list of seven best budgeting books too for traders beginning their journey. Then, in the end, we would round up everything.

7 Easy Books to Start Technical Analysis

Getting Started in the Technical Analysis

It is one of those books which cover every primary technical aspect in one publishing. It is the best book for someone who wants to get introduced to the technical analysis world of trading. The masterpiece, by Jack D. Schwager, covers all the major points like charts, patterns, trends, ranges, and tools with the help of straightforward examples. Moreover, you would also know about the various types of orders and how to use them effectively. The book is very concise and smooth to understand and gets gradually deeper into more technical topics like indicators and plans.

You would not get a better book than this to start your technical adventure!

Technical Analysis of the Financial Markets

John J. Murphy is a leading trading expert for 40 years, and his pieces of advice are taken as golden words by several in the world. This book by him is for beginner to average level investors who want to gain some insight into objectively analyzing stock charts to understand indicators and tools. Moreover, it is one of those books which cover inter-market relationships, stock rotations, and the latest technological developments in the trading industry.

In short, you would be able to know the art and science of technical charts and indicators and how to use them in the real world. And, thus, be able to make smart decisions.

Encyclopedia of the Chart Patterns

Charts are the gist of technical analysis and this book, by Thomas N. Bulkowski, is an encyclopedia in real sense. It lists down all the major chart patterns available in the market along with the numerical data of their past performance. Moreover, the book also covers the information on requirements and confirmation signals of every chart listed.

Further, one would also understand how to trade the main significant price changes and dynamics effects of the news on the prices. In other words, this chart encyclopedia introduces, discusses, and analyzes each pattern, in the same order. And, it also has a chart ranking system, chart failure patterns, how to avoid it, and spotting guidelines.

One thing is sure once you’ll read it, then no one probably would be better than you at trading price charts.

Technical Analysis from A to Z

This publishing, by B Steven Achelis, is another read for technical beginners to understand the several terminologies associated with the trading market and its other related fields. Two editions are available for this book; the first one contains basic traders-used terminologies. And, the second version contains technical languages related to charts, indicators, tools, strategies, etc. Overall, this work is full of beef for every new to mediocre trader and will get much unheard information about the market.

The USP here is their way and style of writing. The format and explanation were used lucidly and with the help of many examples. Moreover, it contains a list of more than 100+ technical indicators, explained very clearly.

Thus, it is the perfect read to start for anyone.

The Art & Science of Technical Analysis

This book, by Adam Grimes, moves one step further from primarily basic books. It explains trading as a form of art and science, whereby the ‘art’ is the psychological part, and science is the performance analysis thing. One would be able to know the science behind the random directions of the price charts and how you can make a profit from them. However, note that it would be a little difficult for complete beginners to understand this book because of its complexity.

Further, Adam also argues that the randomness in the stock market is what makes it profitable and a balanced buying and selling pressure would not have been gainful. This book also includes past data of successful traders and their trades to avoid mistakes and learn from them. Therefore, all of it makes this book an ideal real for motivated and advanced traders.

Market Wizards

It is not any typical book out there. This book, by Jack D. Schwager, is a collection of interviews of the best stock or forex trading minds from the world. Anybody at any level of expertise will get some inspiration and incredible insight into the best traders of the world. This exciting read would help you understand the art of buying and selling, as well as risk management from the stories of the experts, who were once in a similar situation as you. Some notable traders interviewed are Bruce Kovner, Marty Schwartz, Ed Seykota, etc.

Moreover, in this work, many old and new concepts have been presented concisely, and include frequently asked questions of ordinary traders. The responses from the legends are worth noting.

Overall, Jack has put the right amount of work to prepare for this book, and it indeed came up as one of the best casual books on trading. An innovative and informative text.

How to Make Money in Stocks?

At last, here comes the best national bestseller, i.e. How to Make Money in Stocks, by William J. O’Neil. William is the founder of a data research firm and the investor’s magazine Business Daily. This book was written after researching and analyzing the last 100 years of data and presented the ‘CANSLIM’ method.

The method became popular among investors and managers. Moreover, every other topic in this book is explained with the help of notes and chart patterns.

It emphasizes a different approach than other books and argues to focus on the growth of companies. Further, it also tells how to choose these growth companies through fundamental analysis, and ways to spot buying and selling signals for the same.

So, this was the list of technical analysis books for any trader. One should choose anyone among them as per their convenience and availability.

Rounding Up

There are over 12000+ books written on technical analysis of the trading market. But, remember, not all of them are worth your time. The above books are suitable for every level trader, and you can choose any other too after some research. Books give ordinary traders a great chance to become profitable. The reason is simple; the more you know about something, the more you become competent in it. Remember, learning technical analysis also takes time and is not a single-day thing.

These book works are full of knowledge and skill in the form of strategies, learning, techniques, and psychological tricks. But, remember to keep them in mind while executing a trade too because users generally read and forget everything. You can re-read these books also if required.