It feels like almost every day someone asks me what books I recommend reading if they’re trying to learn more about Technical Analysis. I figured I should just make a list and publish it for everyone to see.
So here you go:
Technical Analysis of Stock Trends by Robert D. Edwards and John Magee – this is without a doubt the bible of Technical Analysis. It’s a must read for anyone who takes this market seriously.
Technical Analysis of the Financial Markets by John Murphy – for me this is the most easy to read and easy to understand books in the history of technical analysis. I would suggest reading this one first, before getting into Edwards and Magee. But you have to read both.
Japanese Candlestick Charting Techniques by Steve Nison – Everything that you need to know about Japanese Candlesticks, their history and how to use them is in this book. Steve Nison is credited with first bringing these eastern techniques to the western world.
Technical Analysis Using Multiple Timeframes by Brian Shannon – this was the first book on technical analysis that I voluntarily read after completing the CMT program. I think the way he explains how to benefit from using more than just one timeframe is the perfect compliment to all of these other books.
Investment Psychology Explained by Martin Pring – I’ve read this one 3 times. It’s a very interesting book with a lot of cool history. He talks about the tulip and south sea company bubbles. I really enjoyed this one. It’s much more of a beach read than the others.
The Little Book of Stock Market Cycles by Jeffrey Hirsch – One of the most valuable tools we have as technicians is seasonality. Jeff who also writes the annual Stock Traders Almanac, which you also need to buy every year, is the official authority on this subject.
Technically Speaking by Chris Wilkinson – this is basically the technical analysis version of the Market Wizards series by Jack D. Schwager, which I also recommend reading. Wilkinson interviews technicians from the past including guys like Stan Weinstein, John Murphy, Martin Pring and Phil Roth.
Intermarket Analysis: Profiting From Global Market Relationships by John Murphy – I am such a John Murphy disciple. Him and I look at markets in a very similar way. I saw him give a presentation recently and I promise you, had he gotten stuck in traffic, I could have stepped in and done the presentation for him. He has influenced a lot of my work and I recommend reading all of his books. You can also subscribe to his market message on Stockcharts.com – which I’ve been doing since 2005.
Elliott Wave Principle by A.J. Frost and Robert Prechter – This is everything you need to know to start counting waves. The Fibonacci concepts are explained here very well. I really enjoyed this book. Even if you’re not or don’t want to be a hard-core Elliotician (I’m not one), sometimes these waves really stick out and provide incredible risk/reward opportunities. Knowing these principles is a huge advantage.
Technical Analysis For The Trading Professional by Connie Brown – The relative Strength Index (RSI) is something that I incorporate into my work every single day. This book helps you to think outside the box and explains how to manipulate different oscillators so you get signals that others wouldn’t because they use default settings. This one really gets your mind going in ways that other books simply do not.
And that’s my list.