Ok, so we're back with the next installment of our Recommended Reading List series where we highlight the best of financial reads. We've already presented a few must read books on our list: Part 1: Fundamentals, Part 2: Good market reads, & Part 3: Gurus. This time, as per request of many readers, we're focusing on the best books for charts/chartology and technical analysis.
Whether you use it is ultimately up to you. But, I will say that you absolutely need to at least be cognizant of it simply because it is a direct illustration of price action and can be a great tool. Personally, I use a hybrid of both fundamentals and technicals, as you get the whole picture. I definitely recommend people study up on technicals to include in their investing/trading arsenal. After all, if you had used technicals this past year, you would have at the very least saved and/or made a bunch of money.
To the list (in no particular order):
- Technical Analysis Using Multiple Timeframes by Brian Shannon: This is one of *the* best books on charts out there. It comes from the highly successful trader and well known blogger Brian Shannon of Alphatrends.net. Highly recommended.
- Technical Analysis of Financial Markets by John J. Murphy: Covers technical tools, indicators, and how to use them.
- Encyclopedia of Chart Patterns by Thomas Bulkowski: This is simply one of the most complete books on chart patterns out there.
- Getting Started in Technical Analysis by Jack Schwager: This book is by one of the most respected in the field. Schwager covers trends, patterns, price activity and more. He also has authored another book on one of our other reading lists, Market Wizards, where he interviews top traders.
- Technical Analysis of Stock Trends by Robert Edwards: A must-read for every market technician.
- Chart Your Way to Profits by Tim Knight: Successful trader details watchlists, chart styles, indicators, and analysis methods.
Don't forget that instead of buying all those books individually, you could just buy an Amazon Kindle 2 (the new version that just came out). If you're unfamiliar, the Kindle 2 is a wireless reading device that can hold over 1,500 books and all you do is download the books to the device. I highly recommend it, especially if you travel. That way, you have all your reading with you at all times in one small device: the Amazon Kindle 2.
Lastly, make sure to check out our recent lists of recommended reading:
