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Basic Technical Analysis Trading Manuals

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Many forex traders prefer to base their short term trading decisions on technical analysis factors rather than on fundamentals in order to obtain greater objectivity in their trading plans. For example, they might use a combination of technical indicators like Moving Averages and the Relative Strength Index or RSI to signal their trade entries and exits.

The literature upon which the practical use of such indicators is based is extensive, and a good selection of the best book choices for those approaching the topic for the first time is provided below.

While most of these technical analysis manuals were originally targeted toward traders operating in the stock or commodity market, the technical analysis methods discussed usually also apply very well to trading the forex market.

Technical Analysis of the Financial Markets by John Murphy

Book reference:

Murphy, John J., Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications, second edition, New York Institute of Finance, 1999, ISBN-13: 978-0735200661.

Review:

This reference book has to be one of the most widely read and popular sources of basic information about technical analysis – including chart pattern analysis and technical indicators – and how to apply these valuable methods to making money trading the financial markets.

Well illustrated and clearly explained, the latest edition of this trading classic has also been updated to include a discussion of computer charting tools.

Technical Analysis From A to Z by Steven Achelis

Book reference:

Achelis, Steven B., Technical Analysis from A to Z, second edition, Probus Publishing Company, 2000, ISBN-13: 978-0071363488.

Review:

Technical Analysis From A to Z was written by Steven B. Achelis – the president and founder of EQUIS International. Achelis is also the creator of MetaStock, a leading supplier of data and software for traders.

His comprehensive reference manual contains an introduction to the topic of technical analysis. In addition, one of the book’s most helpful features is an extensive glossary listing and basic explanation of more than one hundred of the most commonly used technical indicators.

Technical Analysis Explained by Martin Pring

Book reference:

Pring, Martin J., Technical Analysis Explained, fourth edition, McGraw-Hill, 2002, ISBN-13: 978-0071381932.

Review:

Martin Pring’s Technical Analysis Explained is another one of the classic books written on the subject of technical analysis and how to use its tools effectively when trading the financial markets. This well written and comprehensive guidebook to the subject provides most of what forex traders need to know to begin applying technical analysis tools to their trading process.

Technical Analysis: The Complete Resource by Kirkpatrick and Dahlquist

Book reference:

Charles D. Kirkpatrick II and Julie R. Dahlquist, Technical Analysis: The Complete Resource for Financial Market Technicians, FT Press, 2006, ISBN-13: 978-0131531130.

Review:

Technical Analysis: The Complete Resource for Financial Market Technicians by Kirkpatrick and Dahlquist holds a top position as one of the most comprehensive educational and reference books on the subject of technical analysis in print today. It covers just about the entire field of technical analysis, and the work makes an excellent reference manual for those forex traders wishing to apply technical analysis methods to identifying potentially profitable trading opportunities.

Further reading:

You can read about basic forex trend indicators.

Or about the most common price patterns.


Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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