stock analysis technical analysis

Technical Analysis Books to Read

Technical Analysis Books

Technical analysis is a wide topic in stock trading.  There are many technical analysis books putting on the shelf and investor sometime get confuses about the knowledge they should read and mastery before the trading.

All the technical analysis books do serve for it own purpose.  However comes to stock trading, mastery a technique is much more importance than just reading analysis books.  Having said that, there is some mandatory knowledge an investor should know during their trading journey.

Candlestick Charting Technique

Candlestick charting is an old charting method, but it is a powerful tool because it will help on stock market analysis.  4-importance information is recorded in a candlestick, namely open, close, high and low.

Candlestick chart could be plotted at any time frame such as hourly, daily, weekly chart.

There are many terminologies in candlestick technique, such as Doji, Hanging man, Marubozu and much more.  Don’t be scare about the terms use.  These terms basically are helping investor to classify and interpret the psychological manner for a respective market.

The book in the title of Japanese Candlestick Charting Technique from Steve Nison that investor could always start with.

Technical Analysis Books for Volume Analysis

Everyone knows trading involves volume heavily.  Perhaps, volume is the fundamental for stock price moment.  Unfortunately there are not many technical analysis books talk about volume analysis.

Mike Volume Theory is the technical analysis theory that base on transaction volume.  The theory reveals the knowledge for interpreting transaction volume fluctuation to identify the trading opportunity.  The technique has been tested in China and Hong Kong Stock Exchange market.  The theory has gained substantial honour from the investor at this region.

Mike Volume Theory has published a comprehensive book on volume analysis in Chinese literature.

Moving Average – Technical Analysis Knowledge

Moving Average is a must learn technique for technical analysis investor.

Every investor know that it is very hard to predict daily high and low however it is easier to make profit to trade within a trend.  Moving average is the best trending tools

A technical analysis chart is always comes along with moving average trend line, it could comes with multiple trend line under difference time-cycle.  Understanding the trend line pattern will help investor to identify the trading strategy.  The crossover between 2 differences trend line is one of the common use trading strategy.

There are very many other technical analysis books that worth to learn, but above 3 fields are the one we recommended.  Through learning and practical trading, investor will pretty soon mastery the technique.

stock analysis stock indicator

Stock Analysis Indicator

Stock Analysis Indicator has gained an importance status is technical analysis.  One of the reason indicators has been widely used because there is many investors believe share investment could be simplified by only judging the analysis indicator.

Stock indicator is an importance tools that help investor quickly assess individual technical chart, however share investment is more than merely analysis indicator. N Keep learning and apply the knowledge learn in the stock trading.

Availability of Stock Analysis Indicator

There are many indicators for stock chart analysis, such as Stochastic indicator, MACD, moving average, Stop and Reversal, Bollinger Band, RSI, etc.  In most of the stock analysis chart, we always come across technical chart that come along with difference technical indicators.  An investor will easily get confuse among so many indicators.

Common Misconception Using Indicator

Technical analysis indicator only apply for certain time-cycle period, moreover some indicators only suitable for dedicates time-cycle period.  Investor is advised to understand the nature of indicator before putting it in the technical chart.

In stock trading, we always experience difference conclusion while applying indicators in chart analysis.  More over, even same indicator may also derive to difference conclusion due to the difference of time-cycle.  For instance:

1.                  A-indicator gives sell signal for medium-short time cycle period however long-medium time-cycle period still maintain buy-in signal;

2.                  A-indicator shows buy-in signal for medium-short time cycle period but B-indicator has not shown buy-in signal for same time-cycle;

3.                  A-indicator gives buy-in signal, but B-indicator with difference time-cycle still give sell signal;

There are much more scenario that investor face while applying indicator in the technical analysis.

How to Select Stock Analysis Indicator?

From our trading experience, we do not see any advantages by applying more indicator in a particular technical chart, perhaps, it confuse the investor.

Indicator was invented having their goal to accomplish.  Most of the indicator was calculated from same set of data source, but with difference perspective.  For instance Stochastic Indicator is providing investor the info about the relevant price position within a time period, which also the time-cycle.

Investor should only select the suitable indicators that match to their stock analysis procedure and trading strategy.  We always remind investor select not more than 2 indicators for their stock analysis.

For stock investment, especially comes to technical analysis, we always emphasize the concept of Less is More.  Investor needs to learn any technical indicator and use it across all stocks.  Meanwhile, we also recommend investor not only consistently using the same indicator but also setup a stock analysis procedure.