Where to start?
Hello -
I'm a new reader to your blog. I am trying my best to increase my
understanding of the markets, and I'm curious if you can point me in the right direction. I've seen all kinds of graphs and charts on yours and other blogs (like this for example), but I have no idea as to how to read or interpret it. Is there a book, or series of books, that I can pick up that might help?
Thanks for your time!
Wade
Welcome aboard Wade! If you are looking for reading material, the best place to start (I think) is with John Murphy's "Technical Analysis of the Financial Markets
When you delve into the more specialized areas you have Steve Nison for candlestick charts
You will see two trends develop here; one, there is a huge range of resource material on the various specialities in technical analysis; second, it's an expensive hobby to collect them all. I try and pick up new copies sold at discount on Amazon, or if there is a deep discount second hand copy I will get this and buy new if it's worth it.
The other resource which is growing at an exponential rate is the information you can get for free on the web. Other than the growing list of blogs, there are sites like Thomas Bulkowski's which has one of the most comprehensive candlestick resource, including pattern probability information. He also publishes a list of books on the subject. Investopedia is great for definitions and as a glossary of terms. Trending 1-2-3 and Incredible Charts (the latter site I found hard to navigate) is also good for definitions. Wikipedia has a respectable technical analysis area too.
None of these books tell you 'How' to trade. I am currently reading a book by Brian Shannon which very neatly keeps the focus on developing your trading technique; the pitfalls and what to watch for. There is no clutter with indicators or complex charts where the focus is ultimately on price action. You can buy a copy here. Although I don't have a copy of the next book by Brett Steenbarger, he does have an excellent blog on market sentiment and trader psychology. His book is, not surprisingly, on Trading Psychology
Hope this helps. Comments welcome.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website