Best Technical Analysis Books

Years ago when I was studying for the Market Technician Association’s Chartered Market Technician exam, we used to have to read books. Yes, real books with spines, and pages and everything. These pages were filled with charts, graphs and methods of other people who practiced the so called Voo-Doo Science we call Technical Analysis. As I became indoctrinated into their way of life, I knew that there was no other way to approach markets. It’s because of technical analysis that my focus bent towards volatility and trading volatility derivatives. So let’s take a step back in time as I share with you the Best Technical Analysis Books – aka the CMT Level 1 – CMT Level 3 Reading Assignments of 2012.

– Carl E. Sera, CMT

CMT LEVEL 1 EXAM READING ASSIGNMENTS

Technical Analysis of Stock Trends

CHAPTERS: THE TECHNICAL ANALYSIS OF STOCK TRENDS

1. The Technical Approach to Trading and Investing. 2. Charts. 3. Dow Theory. 4. Dow Theory in Practice. 5. The Dow Theory’s Defects. 5.1 The Dow Theory in the 20th and 21st Centuries. 6. Important Reversal Patterns. 7. Important Reversal Patterns – Continued. 8. Important Reversal Patterns – The Triangles. 9. Important Reversal Patterns – Continued. 10. Other Reversal Phenomena. 11. Consolidation Formations. 12. Gaps. 13. Support and Resistance. 14. Trendlines and Channels. 15. Major Trendlines. 15.1. Trading the Averages in the 21st Century. 16. Technical Analysis of Commodity Charts. 16.1 Technical Analysis of Commodity Charts, Part 2. 17.2 Advancements in Investment Technology. 23. Choosing and Managing High-Risk-Stocks. 25. Two Touchy Questions. 27. Stop Orders. 28. What is a Bottom – What is a Top? 29. Trendlines in Action. 30. Use of Support and Resistance. 31. Not All in One Basket. 38. Balanced and Diversified. 39. Trial and Error. 40. How Much Capital to Use in Trading. 41. Application of Capital in Practice. 42. Portfolio Risk Management. 43. Stick to Your Guns. Appendix “C” Technical Analysis of Futures Charts

Technical Analysis

Chapters: Technical Analysis: The Complete Resource for Financial Market Technicians

The Introduction of Technical Analysis. 2. The Basic Principle of Technical Analysis – The Trend. 3. History of Technical Analysis. 4. The Technical Analysis Controversy. 5. An Overview. 6. Dow Theory. 8. Measuring Market Strength. 9. Temporal Patterns and Cycles. 10. Flow of Funds. 11. History and Construction of Charts. 12. Trends – The Basics. 14. Moving Averages. 15. Bar Chart Patterns. 17. Short-Term Patterns. 18. Confirmation. 19. Cycles. 20. Elliott, Fibonnaci, and Gann.

Technical Analysis Explained

Chapters: Technical Analysis Explained

2. Financial Markets and the Business Cycle. 3. Dow Theory. 4. Typical Parameters for Intermediate Trends. 5. Price Patterns. 6. Smaller Price Patterns. 7. One- and Two-Bar Price Patterns. 8. Trendlines. 9. Moving Averages. 10. Momentum Principles. 11. Individual Momentum Indicators I. 12. Individual Momentum Indicators II. 13. Candle Charts. 15. Miscellaneous Techniques for Determining Trends. 16. The Concept of Relative Strength. 18. Price: The Major Averages. 19. Price: Group Rotation. 20. Time: Longer-Term Cycles. 22. Volume: General Principles. 23 Volume Oscillators. 24. Breadth. 25. Why Interest Rates Affect the Market. 26 Sentiment Indicators. 27. Applying Technical Analysis to the Theory of Contrary Opinion. 28. Checkpoints for Identifying Primary Stock Market Peaks and Troughs. 29. Automated Trading Systems. 30. Technical Analysis of Global Stock Markets. 31. Technical Analysis of Individual Stocks.

The Definitive Guide to Point and Figure

Chapters: The Definitive Guide to Point and Figure

Introduction to Point and Figure Charts. 2. Characteristics and Construction. 3. Understanding Point and Figure Charts. 4. Projecting Price Targets.

CMT Level 2 Exam Reading Assignments

Technical Analysis of Stock Trends

Chapters: Technical Analysis of Stock Trends

17. A Summary and Some Concluding Comments. 17.1. Technical Analysis and Technology in the 21st Century. 17.2 Advancements in Investment Technology. 23. Choosing and Managing High-Risk Stocks. 24. Probable Moves of Your Stocks. 27. Stop Orders. 28. What is a Bottom? – What is a Top? 42. Portfolio Risk Management. Appendix “A” The Probable Moves of Your Stocks.

New Trading Systems and Methods

Chapters: New Trading Systems and Methods

Introduction. 2. Basic Concepts. 3. Charting. 4. Charting Systems and Techniques. 6. Regression Analysis. 7. Time-Based Trend Calculations. 8. Time-Based Trend Systems. 9. Momentum and Oscillators. 10. Seasonality. 11. Cycle Analysis. 12. Volume, Open Interest and Breadth. 13. Spreads and Arbitrage. 14. Behavioral Techniques. 20. Advanced Techniques. 21. System Testing. 23. Risk Control. 24. Diversification and Portfolio Allocation.

Elliot Wave Principle

Chapters: Elliott Wave Principle

The Broad Concept. 2. Guidelines of Wave Formation. 3. Historical and Mathematical Background. 4. Ratio Analysis and Fibonacci Time Sequences.

Technical Analysis

Chapters: Technical Analysis: The Complete Resource for Financial Market Technicians

7. Sentiment. 10. Flow of Funds. 13. Breakouts, Stops, and Retracements. 14. Moving Averages. 15. Bar Chart Patterns. 17. Short-Term Patterns. 18. Confirmation. 19. Cycles. 20. Elliott, Fibonacci, and Gann. 21. Selection of Market and Issues: Trading and Investing. 23. Money and Risk Management. Appendix “A” Basic Statistics

Japanese Candlestick Charting Techiques

Chapters: Japanese Candlestick Charting Techniques

Introduction. 2. A Historical Background. 3. Constructing the Candlestick. 4. Reversal Patterns. 5. Stars. 6. More Reversal Patterns. 7. Continuation Patterns. 9. Pulling It All Together.

Investment Psychology Explained

Chapters: Investment Psychology Explained

All Chapters

Technical Analysis Explained

Chapters: Technical Analysis Explained

16. The Concept of Relative Strength. 19. Price: Group Rotation. 21. Practical Identification of Cycles. 25. Why Interest Rates Affect the Stock Market. 28. Checkpoints for Identifying Primary Stock Market Peaks and Troughs. 28. Automated Trading Systems.

Technically Speaking

Excerpt from Technically Speaking

http://tinyurl.com/cmtlevel2 – Please note, this link is no longer valid.

Evidence-Based Technical Analysis

Chapters: Evidence Based Technical Analysis

4. Statistical Analysis. 5. Hypothesis Tests and Confidence Intervals. 6. Data-Mined Bias: the Fool’s Gold and Objective TA. 7. Theories of Nonrandom Price Motion.

The Definitive Guide to Point and Figure

Chapters: The Definitive Guide to Point and Figure

5. Analyzing Point and Figure Charts. 6. Point and Figure Charts of Indicators. 7. Optimization of Point and Figure Charts. 8. Point and Figure’s Contribution to Market Breadth. 9. Advanced Point and Figure Techniques.

CMT Level 3 Exam Reading Assignments

Technical Analysis for the Trading Professional

Chapters: Technical Analysis for the Trading Professional

Oscillators Do Not Travel Between 10 and 100. 2. Dominant Trading Cycles Are Not Time Symmetrical. 3. Choosing and Adjusting Period Setup for Oscillators. 4. Dominant Trend Lines Are Not Always from Extreme Price Highs or Lows. 5. Signals from Moving Averages Are Frequently Absent in Real-Time Charts. 6. Adjusting Traditional Fibonacci Projections for Higher-Probability Targets. 7. Price Projections by Reverse Engineering Indicators. 8. Price Objectives Derived from Positive and Negative Reversals in RSI. 9. Calculating Price and time Objectives from a Gann Wheel. 10. Using Oscillators with the Elliott Wave Principle. 11. Volatility Bands on Oscillators.

Elliot Wave Principle

Chapters: Elliott Wave Principle

All Chapters

Intermarket Analysis

Chapters: Intermarket Analysis: Profiting from Global Market Relationships

A Review of the 1980s. 2. 1990 and the First Persian Gulf War. 3. The Stealth Bear Market of 1994. 4. The 1997 Asian Currency Crisis and Deflation. 5. 1999 Intermarket Trends Leading to Market Top. 6. Review of Intermarket Principles. 7. The NASDAQ Bubble Bursts in 2000. 8. The Intermarket Picture in 2003. 9. Falling Dollar During 2002 Boosts Commodities. 10. Shifting from Paper to Hard Assets. 11. Futures Markets and Asset Allocation. 12. Intermarket Analysis and the Business Cycle. 13. The Impact of the Business Cycle on Market Sectors. 14. Diversifying with Real Estate. 15. Thinking Globally.

Japanese Candlestick Charting Techiques

Chapters: Japanese Candlestick Charting Techniques

10. A Cluster of Candles. 11. Candles with Trendlines. 12. Candles with Retracement Lines. 13. Candles with Moving Averages. 14. Candles with Oscillators. 15. Candles with Volume. 16. Measure Moves. 17. The Best of the East and West: The Power of Convergence.

Irrational Exuberance

Chapters: Irrational Exuberance

All Chapters

The Definitive Guide to Point and Figure

Chapters: The Definitive Guide to Point and Figure

All Chapters

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You may notice another book on the shelf…

There you have it. These books, the Code of Ethics and a little bit of luck is all you needed to pass CMT Levels 1-3.

Thanks for taking this trip down memory lane with me.

– Carl E. Sera CMT

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