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Top 7 Books to Learn Technical Analysis

There is a wide range of books available for learning technical analysis, covering topics like chart patterns, crowd psychology, and even trading system development. While many of these books provide outdated or irrelevant information, there are several books that have become timeless masterpieces when it comes to mastering the art of trading.

In this article, we will look at seven books on technical analysis to help traders and investors better understand the subject and employ the strategy in their own trading.
Key Takeaways
  • Many books in the technical trading space are outdated, but several do stand the test of time.
  • These classics focus on the fundamentals of technical analysis and reading charts as insight into market psychology rather than simply listing off an array of patterns.
  • Among the top books for learning technical analysis is Jack Schwager's "Getting Started in Technical Analysis" and "How to Make Money in Stocks" by William O’Neil.

Getting Started in Technical Analysis by Jack Schwager

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Amazon

This book is an excellent starting point for novice traders that covers every major topic in technical analysis. In addition to covering chart patterns and technical indicators, the book takes a look at how to choose entry and exit points, developing trading systems, and developing a plan for successful trading. These are all key elements to becoming a successful trader and there aren't many books that combine all of this advice into a single book.

Technical Analysis Explained by Martin Pring

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Amazon

This book is considered by many to be the “Bible” of technical analysis since it contains an exhaustive amount of information covering the core concepts. The book also covers ancillary topics like trading psychology and market mechanics that help traders understand "the why" rather than just "the how" of technical analysis. Despite the wide breadth of knowledge, the book is very approachable and easy to understand for novice traders.

Technical Analysis of the Financial Markets by John Murphy

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Amazon

This book is an approachable introduction to technical analysis that still provides a high level of detail and actionable insights. As a former technical analyst for CNBC with over 40 years of experience in the market, Mr. Murphy has become a leading voice for technical analysis and is highly skilled at conveying complex topics in an easy to understand manner. Novice traders may want to check out this book before diving into more complex topics.

How to Make Money in Stocks by William O’Neil

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Amazon
This book is considered a classic work on technical analysis and was written by the founder of Investor’s Business Daily, one of the most popular investment publications in the world. O’Neil was a strong advocate for technical analysis, having studied over 100 years of stock price movements in researching the book. In the book, he presents a wide range of technical strategies and tips for minimizing risk and finding entry and exit points.

Japanese Candlestick Charting Techniques by Steve Nison

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Amazon

This book is the definitive volume on candlestick charting, which is one of the most commonly used technical analysis tools. Prior to Nison’s work, candlestick charting was relatively unknown in the West. He helped publicize the technique and train institutional traders and analysts at top investment banking firms. The book offers a thorough explanation of the subject, including explanations of virtually all candlestick patterns that are used by traders today.

Encyclopedia of Chart Patterns by Thomas Bulkowski

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Amazon

This book is truly an encyclopedia that contains an exhaustive list of chart patterns a statistical overview of how they have performed in predicting future price movements. Mr. Bulkowski is a well-known chartist and technical analyst and his statistical analysis set the book apart from others that simply show chart patterns and how to spot them. The updated version of the book includes a section on event trading and patterns that occur with news releases.

Technical Analysis Using Multiple Timeframes by Brian Shannon

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Amazon

This book has a wide appeal for technical traders because it can be helpful to traders regardless of the strategy that they use. The book highlights the value of applying technical analysis across multiple timeframes to identify trades with the highest probability of success. It also goes well beyond what its title implies and covers subjects including short selling, stop-loss order placement, price target identification, and related topics.

10,000+
There have been more than 10,000 books on technical analysis released for traders, but these seven stand out.
Bottom Line
There have been many books written on technical analysis, but some of them have become timeless classics that are invaluable to traders. Those new to technical analysis may want to check out these books to fine-tune their strategies and maximize their odds of success.
Article Sources
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  1. Steve Nison's Candlecharts.com. "."
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