Basics of Technical Analysis

By Little Bull | Cryptos.News | 6 Feb 2021

If you are new, you have probably heard or read that there are two basic branches of asset analysis, which at the same time complement each other, namely fundamental analysis and technical analysis.

Actually at the beginning one does not know where to start, more than anything else looking for how to learn technical or fundamental analysis and not find much information but courses, but there are endless literature that speak and explain the basics you need to know about fundamental and technical analysis.

Today with this article what I intend is that you leave with a list of books on technical analysis and brief review on each one so that you understand how to approach them and in what order, since a basic but solid knowledge is essential to face a course rather than having no idea.


1) Technical Analysis of Financial Markets, John J. Murphy.
We start with this book not only because it is the first book I read but because it has the position fully earned, ranging from the basics of how to read a chart through tools that require some practice and concreting with very interesting functions such as Fibonacci.
For sure this book is the bible of technical analysis and it is essential that you have it in your library.



2) The Wyckoff Method: Keys to understand the fundamentals of trading.
A great complement to the first book just mentioned as it explains very well the movement of prices based on the laws of markets among other factors, assimilating very well the main instruments mentioned in the book by John J. Murphy. A great work by Richard Wyckoff.


3)The Candlestick Tradding Bible,Homma.
A work worthy of its name, really the first two books plus this one could not be a more perfect trident than they are.
While in the aforementioned books certain patterns are named and explain how they usually behave, this one talks and explains perfectly how candlesticks flow forming shapes to predict changes in trends and continuity.
It does not present a great difficulty, it is really very pleasant to read and could easily be the first or second book on the list but I decided to place it in this position because of the great complement it makes with the other two.
It is also a good option to read it at the same time you read Technical Analysis of Financial Markets.


4) Secrets to Winning in Bull and Bear Markets, Stan Weinstein.
One of the best books to complete a good basic technical analysis of medium and long term. A large number of examples perfectly complement the theory that provides the reader from the side of 3 fundamental tools.
It is simply indispensable.


5) Day Trading: Intraday trading: strategies and tactics, Oliver Velez.
To finish with this list, I put this book that is key to remember one of the biggest challenges of every investor, the psychological aspect. It deals extraordinarily well with how to face the emotional difficulties when trading, accompanied by very good plans and monetary strategies to begin a process of professionalization in the administration of your capital.
Really a jewel.


Honestly, there are many lists of books on how to approach a good technical analysis, but the good thing about this one is that you learn the basic tools in great detail so that tomorrow you can easily incorporate other much more complex ones, but with the peace of mind that with the knowledge already acquired you will not require much more to be a great Technical Analyst.

Do not get tired of reading, since learning is everything in this fascinating world.

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Little Bull
Little Bull

Argentinean blogger.


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