Top 7 Books to Learn Technical Analysis

Books on technical analysis are many and may be found on a variety of themes, from chart patterns and crowd psychology to the creation of trading systems. While many of these publications contain knowledge that is no longer current or useful, there are a select few that have endured as classics in the field of trade.

This article reviews seven books on technical analysis aimed at educating and empowering traders and investors to better understand and implement the method in their own trading.

KEY POINTS

Though many books on technical trading are now out of date, some have stood the test of time.
Instead of just listing off a variety of patterns, the authors of these classics teach readers how to apply technical analysis and read charts to better understand the psyche of the market.
The best books on technical analysis include “How to Make Money in Stocks” by William O’Neil and “Getting Started in Technical Analysis” by Jack Schwager.

Getting Started in Technical Analysis by Jack Schwager

This book covers all the bases for newcomers to the field of technical analysis and is a great resource for newbie traders. In addition to discussing chart patterns and technical indicators, this book analyses the best times to enter and leave a trade, as well as creating a trading system and trading plan. There aren’t many publications that include all of this crucial information for aspiring traders in a one volume.

Technical Analysis Explained by Martin Pring

Many in the field of technical analysis regard this book as the “Bible” due to the sheer volume of material it provides on the subject’s foundational concepts. In addition to teaching readers “the how,” this book also explains “the why” behind technical analysis through discussions of trading psychology and market dynamics. The book covers a lot of ground, yet it is written in a way that even newbie traders should have no trouble following up.

Technical Analysis of the Financial Markets by John Murphy

This book serves as an accessible introduction to technical analysis while still delivering substantial detail and practical takeaways. Mr. Murphy is a major voice for technical analysis and is adept at communicating difficult concepts in a way that is accessible to a wide audience because to his expertise as a CNBC technical analyst and his 40+ years in the market. This book could be helpful for novice traders as a primer before delving into more advanced concepts.

How to Make Money in Stocks by William O’Neil

The author of this book is the man responsible for creating Investor’s Business Daily, one of the most widely read financial journals in the world. After researching stock price movements for nearly a century, O’Neil came away from his book a staunch supporter of technical analysis. In the book, he details numerous technical tactics and advice for reducing exposure to risk and pinpointing optimal entry and exit points.

Japanese Candlestick Charting Techniques by Steve Nison

Candlestick charting is a common method of technical analysis, and this book is the authoritative resource on the topic. Candlestick charting was mostly unheard of in the West till Nison’s research popularised it. He promoted the method and educated traders and analysts at major financial institutions on how to implement it. This book provides a detailed introduction to the topic, covering everything from the history of candlestick charts to modern trading strategies.

Encyclopedia of Chart Patterns by Thomas Bulkowski

This book is like an encyclopaedia since it lists every possible chart pattern and provides a statistical review of how well each pattern has done at predicting future price movements. The book stands out from others that merely demonstrate chart patterns and how to recognise them due to the inclusion of Mr. Bulkowski’s statistical analysis, who is a well-known chartist and technical analyst. The revised edition of the book features an expanded discussion of event trading and the patterns that emerge in response to news stories.

Technical Analysis Using Multiple Timeframes by Brian Shannon

This book has broad appeal among technical traders because it contains useful information that can be applied by traders of all strategies. The book emphasises the need of using technical analysis on different time periods to find profitable trades. It also goes much beyond the scope implied by its name, delving into such tangential areas as short selling, stop-loss order placement, price target selection, and more.

There have been more than 10,000 books on technical analysis released for traders, but these seven stand out.

Conclusion

Many books have been written on technical analysis, but only a few have stood the test of time to become true trading classics. If you’re just getting started with technical analysis, these books could help you hone your skills and improve your chances of success.

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