Best forex technical analysis books.
Which books on Forex have had the most positive reviews from traders and which are the best selling trading books in the world? This is a question that I get asked quite frequently, so I decided to write an article answering it. If you're a newbie trader or just want to broaden your trading horizons a little, this is an article that I highly recommend reading. I call it my top forex technical analysis books.
Trend Trading by Steve Nison is one of the first books that I bought as a new forex trader and I am very pleased with it. It's also the first trading book that I reviewed in this article and I think the title really explains it well. In fact, the title might be a bit of an understatement.
Trend Trading is a detailed and easy to understand manual for futures and forex currency trading. It covers technical and fundamental analysis and it shows you how to identify the first possible breakouts before other traders start panicking and pulling out their money. Nison uses candlestick charts to break down price changes into profit triggers, and he explains that it is the first step towards realizing your trading goals. The first three chapters are packed with tons of information and screenshots from some of the greatest financial and economic events of the last 100 years.
Dow Theory: How To Recognize And Profit From False Earnings is the second and final title in our review. This book teaches you how to spot false indicators and pump and dump scams, as well as how to use basic price action to analyze the market. The entire point of this book is to help you recognize bad trends before they get too big, so you can do something about them before they turn into bigger problems. Dow explains why he thinks trend direction indicators and simple price action together are the key to early stage investors.
The Foreign Exchange Review focuses on explaining what technical analysis is, what its purpose is, and how traders can use it to their advantage. Forex traders may use indicators such as the MACD, Stochastics, moving averages, and more to tell them where their support levels are, where their resistance levels are and when to take profit and exit a trade. There are a variety of technical trading systems available, but I would encourage traders who are new to binary options and forex trading to start small and learn the ropes from the get go. That way, they can get a feel for what they're doing and make better trades later on.
Price Action Forecast: An Introduction to Binary Options Trading was another two-page title in our review. Price Action Forecast shows you how to determine market conditions, which are keys to successful trading. The author David Funk shows you how he uses lagging and accurate price data to determine where the support and resistance levels are in the market, and how he uses them to pick his next entry. He uses indicators, moving averages, and oscillators to give his trading strategies, and all of his strategies are based on tested and effective price action.
Moving Averages and oscillators are both great tools for technical analysis, but it's David Funk's Price Action Forecast that do it in a spectacular way. He uses moving averages and oscillators to show you exactly when to enter and exit trades, how much to take profits and cut losses, and when to take larger positions and risk. This is one of the best book in the bunch on price action trading. It's also one of the more concise and easy to read books. If you want to get the most out of your trading, and if you're serious about making money with binary options, then this is the best book for you.
Another one of the great detail oriented books in this list is Steve Nison's Candlestick Charting. As a trader, who had only been trading in European markets for a couple years at the time, I was a little skeptical of this book at first, given its technical analysis approach. However, I did a little research into this method of technical analysis and found that it was actually a perfect fit for what I was doing. The book goes into great detail on pivot points and candlestick charting in great detail, and is definitely a highly recommended text.