Technical Trading Book Recommendation

I’ve been a fan of the Technical Analysis for Dummies by Barbara Rockefeller. Barbara is a regular contributor to a Currency Trading, a free PDF file downloadable monthly magazine. I got many things out her book.

Then I splurged on Technical Analysis of the Financial Markets by John Murphy. This book is considered a classic and now I see why. All the big technical tools are explained, RSI, Stochastics, Bollinger Bands, Elliot Wave theory, moving averages.
The most interesting thing was reading about monthly and weekly charts and how to use them with daily charts. A chapter on System Trading provided insight into the most successful systems ever, and they were really quite simple.
I can see why this book was a classic, if you want to move from a newbie to
competence, then you need to check this book out and get it for your reading and studying pleasure.

I propose Avri Frister’s “trading machine!” just kidding, just kidding, :smiley: :smiley: :smiley: I swear I’m not a minion! Oh crap toptick’s gonna give me hell for this one.

ps. I will have you know I’ve never looked at the book before so I have no knowledge of it, this post is just to lighten up the morning. Assuming you know about the famous “minions”, best eh!

I [U]would[/U] give you hell…but I can’t stop laughing! :smiley:

damned minions!!!

OK, OK…caught my breath now… Avi Fricker… Oh, man! still laughing

Then I splurged on Technical Analysis of the Financial Markets by John Murphy.

Great book. I have this one on my desk. Not the shelf - the desk. I have tremendous respect for John Murphy and I follow his work. (Yes, he has a web site. He offers quite a bit of free information there. I’m not promoting his site. Find it yourself. :stuck_out_tongue: ) If you liked TA of Financial Markets, you’ll also benefit from his follow up book “Visual Investor”.

As a caveat, I try not to get too hung up on TA and indicators. All of the tools we use are reflections of price. Everything you need to know is in the price. Think it through.

There is a ton of value in Murphy’s work. I think your recommendation is a good one. As I suggested above, much of this is available free on the web; however, it may be worth a small premium to have an old pro like Murphy conduct a guided tour. It’s a small tuition.

Oh, and one more:

I’ve been a fan of the Technical Analysis of Dummies

Never really tried it. :smiley:

minions, please hey, is that fishing bait?

Well I think a mino is fishing bait! as for a minion in th dictionary it means - a servile or unimportant follower of a powerful person.

If you want to know what I was talking about go to this thread and you’ll get it!

Have a good one eh!

Grunions, dudes, grunions. I love fishing! Candlefish work great too.

Both are good. I’ve done some of my most productive fishing with a hand net… and a stick of dynamite.

The Murphy book is awesome, and I recommend “Come into my Trading Room” as well - just recently started it, but it seems excellent so far (although more of a general trading book than specifically TA)

The Mistake is to look at overbought or oversold indicators without regards to the trending indicators. If the indicators show range trading then overbought and oversold indicators are great.

Murphy’s book shows how to use RSI and Stochastics and how to spot a top with that indicator. If it is extremely overbought, it may stay that way while the market has a reason to trend. But when it is ending, then it shows a good way how to use those indicators when desiring to catch a reversal.

The biggest mistake I saw a web host of forex web sites make was one here in trying to short the AUD/USD on the run up over .8000 AUD/USD.
Someone else tried to go long a phenomenon known as falling knife on the GBP/JPY in the middle of the fall without the knowledge of a support area from the October 2006 time frame, this was late Feb 07.
All three trading books that I’ve read mention using the ADX as a way to measure trendedness.
Hope that helps some newbies here.

Nice post, mdetlh. That’s using your head…

At some point in time when the technical books are put down there will be a change:cool:.

You may be right. Presently, TA in many various forms is a common method for measuring market activity. It is possible that traders may migrate to other methods of understanding prices. You already have an idea of what I think of indicators and mechanical systems.

mdetlh made a decent observation from his experience with indicators. I’m not suggesting that it is predictive or will make anyone money, but thinking through the process will help make a better trader. You have to know how the game is being played, not how is should be played. :wink:

This is a good book to read:

The Secrets of Economic Indicators - Bernard Baumohl