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Technical Analsysis Books

Technical Analysis, or TA to the faithful, is the study of stock price and volume. The hope is to be able to discern some information about the possible future state of a given stock by reading the tea leaves of the stock chart. To my knowledge, there's never been a dearth of books about this subject. The following is just a few that I have read. Do you have good ones to recommend? Let me know, thanks.

Fourth Edition. A good book to start from. Has lots of good information. I personally like the 7 to 8 percent loss rule. Has kept me out of trouble many times! Try to find the 2nd edition if you can - I think the CANSLIM rules in that edition are a bit more effective (based on my admittedly small pool of backtesting results).

O'Neil has built an entire company from the ideas he espouses in this book. As he tells you himself, these methods allowed him to own a seat on the NYSE, so obviously they worked for him. His firm puts out a newspaper called Investor's Business Daily. I have subscribed to this paper in the past, so I have a firsthand opinion about it.

 

This is sort of like an encyclopedia of Technical Analysis techniques. If you're new to TA, this may be a bit much. More advanced technicians will find this very useful. Experts may still find something they may have missed.

I personally find this book is excellent as a reference only. Don't try to learn technical analysis from this book! That's a bit like learning the English language from reading the dictionary.

 

This book is written by two of William O'Neil's self-professed 'disciples'. This is an interesting read. Although there is very little technical information in it (for that you should get O'Neil's book!), it provides a good bit of insight into O'Neil's method and how it was practiced with real money. Recommended for casual reading.

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