Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications, by John Murphy

An absolute must for everybody trading any asset class, be it forex, options, commodities… If you are a complete beginner in trading, do not know what is candlestick chart or how the market is working – may be you will need some practise in trading real market after reading the first chapter. Any other trader with a bit of experience looking for a solid base in understanding the charts and technical analysis will not find a more complete and easy to read book on the subject.

We would also recommend this as a core reading for any Technical Analysis exam, be it CFTe, STA or some of the FSA exams. Gives the necessary knowledge of all important indicators, helps you to clear the picture.

Encyclopedia of Chart Patterns, by Thomas N. Bulkowski

The name says it all – the really complete handbook of all candlestick, bar and price-action patterns. Apart from list of the patterns plus traditional target and stop loss calculations for each of them, Thomas Bulkowski gives a psychological explanations forming those patterns. This is very valuable for serious traders looking for more in-depth understanding of market-nature rules and how to act upon them. The book is oriented on stocks, but if you skip the volume discussions it is fully forex-applicable and still the best around.

Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds, by Nicole Elliott

The easiest and the smoothest introduction to a mysterious Japanese type of technical analysis. Written with a lively language and really pleasant to read. For those short in time, second and third chapter is all you need to confidently operate the basics.

Market Wizards: Interviews with Top Traders, by Jack Schwager

All of us sometimes face down-time on the market and need some inspiration, psychological boost. This is the book to read in that state – reasonable and honest opinions about trading life from top traders of 80s. For the fresher heroes look for “New Market Wizards” from the same author.

Trading in the Zone, by Mark Douglas

Perfect “brainwashing” book for self-confident yet-to-be-millionaires newbie traders. Our team is not fond of reading lots of psychological trading books as they tend to make more damage to the young traders, than good. But this one is definitely out of that league and highly recommended.

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