The Best Books to Learn Technical Analysis Like a Professional
Are you serious about technical analysis & Charts?
Are you looking to work in the Financial Industry?
Do you want to attempt to trade successfully Stocks, Foreign Exchange (FOREX) or Binary Options or Contracts for Difference (CFD’s)?
If so, you really need to study Technical Analysis. This is essentially the study of Supply and Demand, Volume and Price through an array of different lenses called Stock Charts.
Professional Market Technical Analysts study for an IFTA (International Federation of Technical Analysts) exam, which is a recognized certification.
If you want to know what they study for the exams and use in the industry… read on.
The Professional Market Technical Analyst Reading List.
Technical Analysis of the Financial Markets
New York Institute of Finance/Prentice Hall – Latest or current edition
A very valuable contribution to the understanding of technical analysis of the financial markets, this book is a must have for the technical (Stock Charts & Indicators) trader.
This book is also prerequisite reading for any serious or professional technical analyst and is core IFTA exam syllabus for the (International Federation of Technical Analysts).
One of my favorite Technical Analysis reference books and published by the New York Institute of Finance, this book is well presented and easy to understand.
Core text for students progressing to Part 2 of the STA/IFTA Diploma.
McGraw-Hill – Latest or current edition
One of the Bibles of Technical Analysis, and one of the best. Pring is a popular technical analyst and the depth of value of this book is unmistakable. This book is prerequisite reading for any serious or professional technical analyst and is core IFTA exam syllabus for the (International Federation of Technical Analysts) of which I am certified.
With 600 pages of detailed Technical Analysis, the quality and quantity of the content can be overwhelming.
Technical Analysis: The Complete Resource for Financial Market Technicians
Kirkpatrick, Charles D & Dahlquist, Julie R
Latest or current edition
A comprehensive book, with a special focus on flow of funds, system trading, money management, sentiment and takes a brief look at statistics.
Covers also back testing and includes various academic studies to back up assertions.
Lots of charts and indicators and core reading also for the CMT (Chartered Market Technician) Exam.
Cloud Charts: Trading Success with the Ichimoku Technique
Recognized as an authority on Cloud Charts, David Lintons section on Ichimoku Techniques (recommended by IFTA/STA) is the key.
Good writings and clear explainations, backed up with very thoughtful use of Ichimoku Charts make this a must read reference.
Japanese Candlestick Charting Techniques
New York Institute of Finance
From the man who introduced candlestick charting to the West, this is the updated 2nd edition of the original.
Candlestick Charts or Bars are used routinely today and are an essential part of buiding your charting methodology.
Candlesticks give insights into short term supply and demand scenarios and enhance speed of pattern recognition.
A second book recommended for reading on candlestick charts.
“Clive Lambert’s extensive trading experience and engaging writing style make this book an informative and enjoyable core text for market participants – and an excellent addition to Nison.” Source STA-UK.org – Reading List
The Definitive Guide to Point and Figure
Understanding Point and Figure Charting is essential to the IFTA certification and there are questions in the exam paper on this topic.
Point & Figure (P&F) was a real eye opener for me. Many of the major Stock Market Analysis Software Program Vendors offer P&F charts now as standard, which is a welcome resurgence of the technique. To see which vendors offer P&F read the Stock Market Software Review
Forecasting Financial Markets
This book is an essential addition to the other books as it focuses on psychology and sentiment, critical for you to understand.
R N Elliott’s Masterworks, the Definitive Collection
New Classic Library, a division of Elliott Wave International, Gainesville GA, USA
Latest or current edition
I had the pleasure of hearing Robert Prechter speak on socionomic theory at the IFTA World Conference in 2014 and he is a giant of the industry.
The Definitive Collection This book compiles R.N. Elliott’s original writings on the Wave Principle and presents it to you in a single, all-inclusive book. Devour the three ground-breaking works, long out of print, in which Elliott first described the Wave Principle to the world.
Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds
Nicole Elliott’s 25 years’ experience of financial markets – both as analyst and trader – and ability to inject flashes of dry humour into her writing make the study of Ichimoku a pleasant as well as useful experience.*
Now, for the first time in English, this book presents the next stage of candlestick analysis – Ichimoku Kinko Hyo. Sometimes called Cloud Charts, this analysis adds moving averages to candlestick charts. But moving averages a little different from those traditionally used in the West. For trending markets, Cloud Charts add an essential tool for analysing near-term areas of support and resistance.*
Sources: Amazon.com & STA-UK.org
Breakthroughs in Technical Analysis
Latest or current edition
The recommended section in this book is the GANN theory section developed by W.D. Gann.
This is usually a critical piece of the exam, but can also be challenging to learn as the esoteric concepts in the theory are more like taking a step into the twilight zone.
Mastering Hurst Cycle Analysis
Christopher Grafton helps to translate J.M Hurst’s ideas to the modern day with plenty of examples.
Cycle analysis is core curricula and Hurst cycles are a new addition to the curricula for IFTA.
Further information on Hurst cycles are at http://hurstcycles.com
21st Century Point & Figure
One of the oldest methods of charting gets another serious update.
As the book mentions 21st Century Point & Figure updates the theory.
Now that we have automated charting and back-testing available broadly we get insights into the effectiveness of Point & Figure
Quantitative Trading Systems – Practical Methods for Design, Testing, and Validation.
Building a robust trading system is important to success. This is exactly what Quants (Quantitative Analysts) do for their day job.
With so many Stock Market Software Program Vendors offering integrated back-testing functionality, this book is a must read.
Dr. Bandy’s interesting book is a must read for anyone who wishes to develop a trading system.
Sources: IFTA / STA https://www.sta-uk.org/education/reading-list/