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.