When people are introduced to Stock Trading and how profitable it is, the next stop for them will be to learn Technical analysis and how to notice the patterns.
Rightfully, because there is no profit to be made if you do not understand chart patterns, crowd psychology, and market triggers
Therefore, in this article, we will show you the 15 Best Books for Technical Analysis.
Also, we will tell you why they are the best books on technical analysis, how to study stock analysis books, and the best technical analysis books recommended by the professionals you admire and want to be like.
What is Technical Analysis?
According to Investopedia, “technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume also patterns seen on charts.”
Unlike fundamental analysis, which attempts to evaluate a security’s value based on business results such as sales and earnings, technical analysis focuses on the study of price and volume.
Furthermore, technical analysis tools are used to scrutinize the ways supply and demand for a security will affect changes in price, volume, and implied volatility.
It is often used to generate short-term trading signals from various charting tools, but can also help improve the evaluation of a security’s strength or weakness relative to the broader market or one of its sectors.
Why Should I Read Stock Analysis Books?
There are many forms of communication like video, pictures, texts, and word of mouth but when you look critically, books are the most trusted form of passing information that is vital and meant to be approved by others.
That is why professors and researchers use books as their primary method of stating the results of their experiments.
So, when we take a look at the 15 best books for technical analysis, it’s not because there are no videos on Youtube that teaches technical analysis.
It’s just that no one knows the authority and credibility of the video producers.
How Can I Learn Technical Analysis?
There are a variety of ways to learn technical analysis. The first step is to learn the basics of investing, stocks, markets, and financials. This can all be done through books, online courses, online material, and classes.
Once the basics are understood, from there you can use the same types of materials but those that focus specifically on technical analysis.
You can read this: Best Online Stock Trading Courses for Beginners in 2024
Best Books For Technical Analysis
In this section, we will list our 15 best books for technical analysis that we compiled after taking surveys and asking for recommendations from the best stock analysts.
1. Getting Started in Technical Analysis – Jack Schwager
As the name implies, it’s one of the best foundational books for anyone starting in technical analysis.
It is replete with topics like trends, chart patterns, trading ranges, and the basic foundation of the mechanics of managing your order.
Also, It is written in simple language and is one of the very few stock analysis books that combine all the necessary knowledge into one place.
You can get the book from Amazon Here
2. Technical Analysis from A to Z – Steven Achelis
This is another good book for beginners filled with terminologies, concepts, definitions, and technical information with over 100 samples of technical indicators.
It is also a great introduction to advanced technical analysis as the book is divided into 2 parts. The first is for beginners while the second has advanced topics.
You can order it from Amazon Here
3. Japanese Candlestick Charting Techniques – Steve Nison
This book was the introductory candlestick charting guide for people in the West as it was relatively unknown before Steve Nison made it popular, teaching it to top traders and analysts.
It is a compendium of all candlestick patterns used by traders in recent times.
So, if you were to pick only one out of the 15 best books for technical analysis then it has to be this one.
You can get it Here
4. Investment Psychology Explained – Martin Pring
As the name suggests, it takes a deep dive into the psychological parts of investments. How traders react to market movements, handle emotions, and separate logic from feelings.
Experts will tell you that you will not go far in Stock trading if you are not in control of your emotions and this book is one of the best technical analysis books that handle that issue.
You can get it Here
5. Technical Analysis Explained – Martin Pring
Some authors deserve a second mention and Martin Pring wrote one of the best technical analysis books with this piece.
It is sometimes referred to as the bible of technical analysis as the top traders swear by it. It works as a reference guide for both students and professionals.
So, you can get it Here
6. Technical Analysis – Charles Kirkpatrick and Julie Dahlquist
This book is an official material of the Chartered Market Technician association due to its wide representation of technical concepts that traders and students cannot do without.
Also, the teaching method is unique in that it combines images and charts that make it an easy read for all. In addition, this is one of the best books on technical analysis
You can get it Here
7. Encyclopedia of Chart Pattern – Thomas Bulkowski
This book is unique in that it does not just give you patterns and charts but also gives the prerequisites and confirmation methodologies for each pattern.
It shows you a range of success or failure probabilities for each pattern.
You can order it Here
8. Market Wizards – Jack Schwager
As we enter the more advanced list of best books on technical analysis, it is only right that we start it with the same author that started the beginner’s list
Jack Schwager compiles for us a series of interviews with the most respected stock and forex traders where they unravel reasons for failures or success.
It is a window into how the minds of your mentors think. In addition, this is one of the best books on technical analysis
You can get it Here
9. Technical Analysis of the Financial Markets – John Murphy
This is one of the best books on technical analysis. It is written by a former technical analyst for CNBC with over 40 years of experience practising, this book will help you cross the bridge between beginner to advanced.
You can get it Here
10. Elliot Wave Principle: Key to Market Behaviour – Robert Prechter
As we go deeper into the more advanced parts of Technical analysis, we will be taking a more in-depth look at particular areas of Technical Analysis.
The Elliot wave principle is a controversial part of stock technical analysis but this book tackles it head-on and gives us practical market implications.
You can get it Here
11. Technical Analysis Using Multiple Timeframes – Brian Shannon
If you are interested in trading across different timeframes to get an overall outlook of the market – which you should be.
Then this book by Brian Shannon will help you win in strategies such as short selling, price target identification, stop-loss order placement and other related topics, making it one of the best books on technical analysis.
You can get it Here
12. Chart Patterns: After The Buy – Thomas Bulkowski
After writing the encyclopedia of chart patterns, Thomas went ahead to study thousands of charts, statistical analyses and price performance of patterns.
He came up with this book which gets into more specialized issues like throwbacks, false breakout, plan entries and confirmation of trades.
So, if you are a lover of research and results, this is a must-have.
You can get it Here
13. How To Make Money In Stocks – William O’Neil
Why else do we do stock trading and technical analysis? To make money.
Trust me, this book delivers on that promise. It explains how to choose stocks and companies with high potential for incredible returns. It also lets you know the best time to enter and exit such trades.
You can get it Here
Also, you can check this: Best QuickBooks Online Classes for Beginners in 2024
14. A Complete Guide to Volume Price Analysis – Anna Coulling
Some schools of thought believe that price-volume analysis is the most important part of technical analysis while others disagree.
As you advance, you will be the judge of that but this book covers all you need to know about a very crucial part of technical analysis – volume price analysis.
You can get it Here
15. The Encyclopedia of Technical Market Indicators – Robert Colby
This book is considered the best technical analysis book on indicators. Mr Robert Colby explained all there is to indicators (strength index, MACD, Ichimoku etc.) You need it in your lineup of books to acquire.
You can get it Here
In compiling the list of the best books for technical analysis, you will notice that we picked from an array of old and new books while listing some of the best books on technical analysis that tackled verticals such as basic foundations, patterns and methodologies, mindset and emotions.
This is to help you become well-grounded so that you are not lacking in any part of the spectrum.
From experience, after recommending this list of books for technical analysis, we get a myriad of questions from newbies about technical analysis and the books.
So, I will take the liberty of answering some commonly asked questions about this topic.
FAQS On The 15 Best Books For Technical Analysis
There is no fail-proof way of making sure that your investments will be in the right stock but for years, technical analysis has been the number one way that thousands of profitable traders have used to turn their cents into dollars.
No universally accepted certificate says you are now good. You are good when you are good, and you will know within you when the time comes.
All the authors listed below that wrote these 15 best books for technical analysis are professional traders and they wrote the book for experienced traders who use it in their firms to make money.
These 15 best books for technical analysis are not the be-all and end-all to technical analysis. Knowledge never ends, and seeking knowledge is a lifelong endeavor.
“I realized that technical analysis didn’t work when I turned the chart upside down and didn’t get a different answer” – Warren Buffet.
From inference, we can say that he does not use technical analysis; instead, he uses his unique “value investing philosophy.”
You are not him, and you don’t know the foundation of his philosophy, so I will reckon you use a strategy used by thousands of people. It’s up to you to make a choice though
CONCLUSION
It is important to note that this list of 15 best books for technical analysis is the personal preference of the author of this piece after conducting extensive research.
These books might not suit you or satisfy your cravings which means you are advised to do your research and read extensively.
The hope is that this article gives you an idea of what to look out for when compiling your list of best books to buy on technical analysis.
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