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Technical analysis. Course for beginners

The Russian edition of the book was prepared with the participation of the Moscow office of the company Reuters

Published with the assistance of Admiral Markets CJSC

Editor A. Stetsenko

Scientific editors A. Ilyin, V. Ionov

Translator A. Polovnikova

Corrector D. Globa

Technical editor THEM. Dolgopolsky

Commissioning Editor A.V. Petrogradskaya

layout designer A.O. Bochenek

All rights reserved. No part of the electronic version of this book may be reproduced in any form or by any means, including posting on the Internet or corporate networks, for private or public use without the written permission of the copyright owner.

* * *

To the readers

Dear Sirs!

We are pleased to present to you our new project - the publication of a series of textbooks for students of Russian economic universities and aspiring specialists in the banking and financial sector.

This project is a continuation of a large educational program to train qualified personnel for financial institutions and markets in Russia and the CIS countries, which Reuters has been implementing for the past 7 years.

Today, Reuters is the world's leading provider of news and financial information. In 2001, the company celebrated its 150th anniversary.

Reuters is unmatched in the volume, complexity and overall volume of information it supplies to banks, the media and a growing number of other business subscribers.

All of the world's leading banks, brokerage firms and financial institutions use this information for trading, large companies use it to study markets and competitors, and the world's media use it to create printed materials, television and radio programs.

We hope that our manuals will be of interest to you and this will be the beginning of a fruitful cooperation with Reuters.

...

Sincerely,Ricardo Torres,CEO of Reuters AO

Acknowledgments

The publishers and Reuters Limited would like to thank the following for their invaluable support in working on this book:

Collin Nicholson of the Australian Technical Analysis Association for his thorough review of the book and constructive advice;

Dr. Keith A. Rogers of Training and Learning Design, who wrote and designed the first version of this book;

Charles Kaplan, President of Equity Analitycs Ltd, for permission to use terms from his technical analysis dictionary at the end of the book;

Haksoo Kim of Pacific Investment Research, Inc. – for the use of his list of financial markets around the world, given at the end of the book;

Ahsoka Markandu, Tracey Khoo, Ty Liam Hwee and Michael Turlington of Reuters Asia Pte Ltd for their support and advice.

Thanks also to Dow Jones & Co. Inc. for providing the photograph of Charles Dow and the rights to use it.

Preface to the Russian edition

Dear readers!

We present to your attention a book published with the support of the international brokerage company Admiral Markets. The book “Technical Analysis” continues the “Course for Beginners” series from the world famous financial news agency Reuters. Admiral Markets prefers to collaborate with professionals in their field, so we decided to sponsor the publication of all books in this series in Russian. It includes the most popular manuals for training traders and analysts, who in the future will have to apply their professional skills in practice on a daily basis.

The book you are holding in your hands is a systematic guide to technical (graphical) analysis of stock prices. Exchange rates, dynamics of the value of shares, futures and other financial instruments - this is a wide field for the application of modern technical analysis. Close attention is paid to the practical use of the presented techniques and various technical indicators, so the book is rich in real examples, charts and explanations. If you want to learn something new, interesting, relevant about international financial markets and understand the main aspects of skill in interpreting and forecasting the prices of financial assets, while being guided by all the capabilities of technical analysis to make highly profitable investment decisions, then, undoubtedly, this is the best book for you!

The main goal of Admiral Markets is to make trading in financial markets as accessible as possible to everyone! In connection with the merger of the Admiral Markets and UMIS companies, new tools for work have become available - CFDs on shares of Russian companies, the RTS index, access to the stock exchange of the Russian Federation and many others. It has also become possible to open new accounts in the FX+ system, absolutely all transactions for which are registered on the St. Petersburg Stock Exchange. Among other things, you still have the opportunity to trade contracts for differences in the prices of shares of the largest US corporations listed on the New York Stock Exchange (NYSE) and the NASDAQ electronic exchange, as well as trade in any of the 45 currency pairs listed by the company.

The modern, intuitive and multifunctional MetaTrader 4 trading terminal, which you can download for free on our company’s website, will help you successfully master and test in practice the strategies and examples described in the book. A real or demo (training) account can be opened in 5 minutes online from anywhere in the world. There are still no minimum deposit requirements, and you can start trading from $10–50. We accept bank transfers, credit card payments, electronic currencies.

In 2007, a unique bonus program Admiral Club™ was developed, which currently includes thousands of our clients. Every year, the company also organizes international trading competitions with substantial prize funds for everyone. By trading virtual money on demo accounts, you can earn real cash prizes!

Since 2006, Admiral Markets has been a member of the Commission for Regulating Relations of Financial Market Participants (KROUFR), and also has an exchange intermediary license No. 1203, which was issued by the Federal Service for Financial Markets with no expiration date. In addition, since 2009, our company has been licensed in the European Union and is regulated by the EU's common financial legislation, including the latest Markets in Financial Instruments Directive (MiFID). The Financial Supervision Authority of the Republic of Estonia (FSA) has issued a license to our central representative office in the European Union, Admiral Markets AS, to carry out basic types of investment and brokerage activities, including the Forex market, the stock, futures and contract markets. price difference (CFD). The license (No. 4.1–1/46) is valid in all 27 member countries of the European Union.

The company also actively promotes educational courses and practical training programs designed specifically to enhance the knowledge and experience of novice traders. Free seminars and courses are regularly organized in all offices and representative offices of Admiral Markets, the purpose of which is to improve the trading skills of existing players and show all the real possibilities of the Forex market to those who have not encountered it before. For independent study of financial markets, UMIS offers a free distance learning package, which you can connect to in your personal account (http://www.umis.ru).

Information for inquiries and company contacts

Admiral Markets corporate website: http://www.forextrade.ru

UMIS corporate website: http://www.umis.ru

Unified help desk telephone numbers:

8-800-555-75-08 (in Russia - free),

8-495-775-75-08 (Moscow).

Address of the central representative office in Russia:

123317, Moscow, Presnenskaya embankment, 10,

block C, tower on the embankment, office. 568.

Email mail: [email protected]

Before you start...

Who is this book written for?

This book was written to introduce the methods of technical analysis to a variety of groups of readers: traders, back office employees, teachers, managers, private investors seeking to learn how to use technical analysis to implement trading strategies. Anyone starting to study technical analysis can use this book as a foundation. Technical analysis is not an easy discipline, so readers of this book may need to read many more books in the future.

Despite its complexity, technical analysis is no longer just a tool for investment experts. With the advent of publicly available sources of historical market data (such as Reuters) and the ability to access markets via the Internet, technical analysis is becoming relevant for all market participants.

This book will give you an understanding of the basic principles of technical analysis, from the creation of the first charts to the concepts that underpin complex analytical tools. After studying the book, you will learn to use the basic methods of analysis and choose the most appropriate ones in each specific case.

You will also be able to apply your knowledge to study or work in technical analysis at ACI.

What will you find in this book?

This book provides a new approach to gaining basic knowledge of the basic concepts of technical analysis, which continues to grow in importance in modern life. The book is written in accessible language, it contains a minimum of special terms and gives their clear definition.

It is especially valuable that the book provides an opportunity to consolidate the material studied. Each section contains an explanation of basic concepts with practical examples. Exercises and short tests will help you consolidate what you have learned. Each chapter includes a brief but thorough overview and a list of recommended readings on the topic under consideration.

How is this book compiled?

This book includes the following sections:

Before you start...

Current section.

Introduction

Summarizes the history of the development of technical analysis and the Dow theory.

Types of charts

This section describes the basic methods of presenting prices and financial data on charts and lists the application features of each type of chart.

Classic chart analysis

Sell or buy? Graphing can often help you recognize patterns that help you make decisions.

Indicators

Is it possible to predict the market trend? This section describes the different types of indicators.

Waves, numbers and cycles

Are markets truly cyclical and can be described by wave patterns? Are markets governed by mathematical laws or are their development chaotic?

A day in the life of a technical analyst

What does it really look like?

In this book you will constantly encounter highlighted in bold important terms and concepts, e.g. Dow theory. Plus, special icons will remind you what you need to do to get the most out of the material.

This icon indicates a definition of a term that is important to understanding the material.

This icon seems to say: “Stop and think.” You can also write down your thoughts in the box you leave empty.

This icon indicates a task, usually written, such as a definition, notes, or calculation.

This icon marks answers that are usually given immediately after tasks.

This icon highlights the main points of the section.

This icon marks questions that will help you review the material. The answers are also attached.

This is a one-page review icon that allows you to quickly review a section. This page is a wonderful resource to study.

A list of additional resources is provided at the end of each section.

How to use this book

Before you start working with this book, determine what exactly you want to get from it. If you use the knowledge gained in your work, enlist the support of management and discuss with them the possibility of allocating time for your studies. Although each person's learning style is different, the best results can be achieved by practicing for approximately 30 minutes every day. If you try to read a book in between other things, neither your time nor the study material will be used properly. You should plan your studies the same way you would plan business meetings.

Remember that the most effective learning is interactive, that is, not just reading text. The exercises in this book will help you think through the material and apply what you learn, so be sure to do the exercises. As the old Chinese proverb says:

I hear and forget
I see and remember
I do and understand.

Try to avoid interruptions in your studies. Chances are your workplace isn't particularly conducive to learning; It is better to study in a quiet place - at home or in the library, in addition, you will need time.

However, remember that learning is not a competition and everyone learns at their own pace. Some tasks will seem easy, others will find them difficult. Take your time and try to get as much out of the book as possible.

This is your study, so it's up to you to decide.

Chapter 1. Introduction

...

Dow was an experienced newspaper reporter who studied under the great Samuel Bowles, the newspaper's editor. Springfield Republican . He was a true New Englander - ultra-conservative, reserved, intelligent, knowledgeable about his stuff. I worked with him in the last years of his life and, despite all the respect that I had for him, like many of his friends, I was sometimes furious with his conservatism... As boxers say, he always hit with a draw.
How Good is the Dow Theory? Part 1 by Bill Dunbar Technical Analysis of Stocks and Commodities, Vol. 3:2 (59–63), 1985

What is market analysis?

Ever since stocks and commodities such as rice began to be traded, traders and investors have noted tendencies and patterns in the behavior of prices over time. Modern markets have given rise to many sayings, such as:

...

“Trend is your friend” or

"Follow the trend."

But what do they really mean? And why are charts used, for example, like this one - the Dow Jones Industrial Average - in financial publications like Financial Times, The Wall Street Journal and electronic data systems?

You may have asked yourself the following questions:

Where did these sayings come from?

How fair and useful are they?

Who uses these graphs?

What do they show?

Most investors, traders, brokers, dealers and other market participants, private or corporate, try to maximize returns on their investments and profits from transactions. They will welcome any method that can help reduce the risk of losing money and increase the chances of winning. But is it possible to determine at what point it is profitable to sell and at what point to buy shares, futures contracts, etc.?

Market participants use charts and analytical tools to determine changes in the supply and demand for securities. It helps predict prices and formulate trading strategies for all financial markets. Some of the most common graphs display:

Equity markets in general (market indices);

Sectors of stock markets (sector indices);

Individual shares;

Exchange rates;

Interest rates (bonds, bills, treasury bills, etc.);

Goods (agricultural products, metals, energy, textile raw materials);

Futures;

Options.

There are two main types of market analysis, each of which is carried out by specific specialists. This:

fundamental analysis;

technical analysis (chart analysis).

In practice, most investors use tools and methods of both types of analysis.

Fundamental Analysis

Fundamental analysis can be defined as follows:

...

Fundamental analysis is a method of predicting future movements in securities quotes based on economic, political and other significant factors and indicators that will affect the supply and demand of securities.

Fundamental analysis identifies and measures factors that affect a security's intrinsic value, such as the general economic and political environment, including factors affecting the supply and demand for securities-related goods and services. If there is an increase in demand but no change in supply, market prices will increase. If supply increases, it will have the opposite effect.

For example, a researcher for a listed company studies the supply and demand for the company's products or services; quality of management; its past and projected performance; plans for the future of the company and its competitors; industry-wide statistics; the general state of the economy and government policies. A product analyst examines prices, supply, demand, and available inventory; consumption forecasts; production or output plans; weather conditions and forecasts; availability of substitutes; economic and political situation.

Based on this data, the analyst builds a model to determine the current and projected value of securities. An uncompensated increase in supply usually leads to a decrease in price, and an uncompensated increase in demand leads to an increase in price. The analyst estimates the intrinsic value, compares it to the current price, and decides whether prices will go down or up. The idea is that if the price of a security is below its intrinsic value, then we should expect it to rise. If the price is higher than the intrinsic value, a fall should be expected.

The difficulty of fundamental analysis lies in accurately assessing the relationships between indicators, and the analyst must rely on his own experience. In addition, the market tends to “anticipate” events and adjust prices in advance. Another objective property of the market (which can be either beneficial or harmful depending on the timing) is that it takes time to react to differences in price and intrinsic value.

Technical analysis

Technical analysis can be defined as follows:

...

Technical analysis is a method of predicting price changes and future market trends by studying charts of historical market movements that take into account security prices, transaction volume and, if possible, the volume of open positions.

Technical analysis examines what has already happened in the market, not what is about to happen. A technical analyst studies the movement of prices and volumes of transactions in securities and uses this data to construct charts based on the actions of market participants. These charts are his main tool. A technical analyst is not interested in global factors affecting the market, but concentrates on the activity of the market for these securities.

Therefore, technical analysis is also a subjective “art” or skill that depends greatly on the experience of the analyst. Even experienced analysts sometimes cannot unambiguously interpret the chart. Two analysts may define the time frame differently: one will note the likelihood of an imminent rise in prices, and the other will interpret what is happening as just a small increase in a long-term downtrend. Why, then, is technical analysis so important to markets?

Principles underlying technical analysis

Technical analysis is based on three principles:

1. Market movement takes everything into account

This means that the current price is a reflection of all the data known to the market that can affect this market. These include supply and demand, political factors and market biases. A technical analyst only looks at price movements and not the reasons behind those movements.

2. Models really exist.

Technical analysis is used to recognize certain market behavior patterns. For many of these models, there is a high probability of a certain outcome. In addition, well-known patterns are repeated on a regular basis

3. History repeats itself

Patterns have been identified and classified for over 100 years. The frequency with which they are repeated leads to the conclusion that human psychology changes little over time

If all the above principles were absolutely reliable, technical analysis would not be an art, but a science. But in reality, history does not always repeat itself, and patterns do not always emerge in the same form as before. Therefore, technical analysis is a set of subjective skills, and the interpretation of charts to predict market behavior depends on the skills of the individual analyst. The future cannot be reliably predicted based on the past. Technical analysis looks at the probability that a given outcome will be achieved in a given situation - and in some cases this probability is very high.

The Russian edition of the book was prepared with the participation of the Moscow office of the company Reuters

Published with the assistance of Admiral Markets CJSC

Editor A. Stetsenko

Scientific editors A. Ilyin, V. Ionov

Translator A. Polovnikova

Corrector D. Globa

Technical editor THEM. Dolgopolsky

Commissioning Editor A.V. Petrogradskaya

layout designer A.O. Bochenek

* * *

To the readers

Dear Sirs!

We are pleased to present to you our new project - the publication of a series of textbooks for students of Russian economic universities and aspiring specialists in the banking and financial sector.

Today, Reuters is the world's leading provider of news and financial information. In 2001, the company celebrated its 150th anniversary.

Reuters is unmatched in the volume, complexity and overall volume of information it supplies to banks, the media and a growing number of other business subscribers.

We hope that our manuals will be of interest to you and this will be the beginning of a fruitful cooperation with Reuters.

Sincerely,Ricardo Torres,CEO of Reuters AO

Acknowledgments

The publishers and Reuters Limited would like to thank the following for their invaluable support in working on this book:

Collin Nicholson of the Australian Technical Analysis Association for his thorough review of the book and constructive advice;

Dr. Keith A. Rogers of Training and Learning Design, who wrote and designed the first version of this book;

Charles Kaplan, President of Equity Analitycs Ltd, for permission to use terms from his technical analysis dictionary at the end of the book;

Haksoo Kim of Pacific Investment Research, Inc. – for the use of his list of financial markets around the world, given at the end of the book;

Ahsoka Markandu, Tracey Khoo, Ty Liam Hwee and Michael Turlington of Reuters Asia Pte Ltd for their support and advice.

Thanks also to Dow Jones & Co. Inc. for providing the photograph of Charles Dow and the rights to use it.

Preface to the Russian edition

Dear readers!

Information for inquiries and company contacts

Admiral Markets corporate website: http://www.forextrade.ru

UMIS corporate website: http://www.umis.ru

Unified help desk telephone numbers:

8-800-555-75-08 (in Russia - free),

8-495-775-75-08 (Moscow).

Address of the central representative office in Russia:

123317, Moscow, Presnenskaya embankment, 10,

block C, tower on the embankment, office. 568.

Before you start...

Who is this book written for?

It is not so easy to get an idea of technical analysis from individual articles on websites or posts on forums; for basic knowledge, a specialized textbook is best suited.

In the book “Technical Analysis. A course for beginners” created by analysts of the Reuters information service contains the basic concepts of the discipline of the same name.

Step by step you will learn why technical analysis is needed and what are the options for carrying it out, master the basic methods and techniques. You will also get acquainted with auxiliary software that can be used in the trader’s terminal.

The book is structured as follows.

1. Introduction - what technical analysis of markets is, the history of its origin, how technical and fundamental analysis differ.

2. Types of charts - which can be used to track existing stock market trends, the advantages and disadvantages of one or another option.

3. Classic chart analysis - a description of the main graphic models through which the trend is studied.

4. Indicators - the most popular Forex indicators available for use in a trader’s trading terminal, their practical application.

5. Waves, numbers and cycles - in this chapter you will become familiar with Gann charts, Fibonacci numbers and Elliott theory.

6. One day in the life of an analyst - the chapter will help systematize all the knowledge gained, an example of using technical analysis in practice.

I present the best books on technical analysis for beginners, which you can download for free.

1. The most popular technical analysis course

Technical analysis is usually difficult for beginners. A course that is very popular will help you quickly and clearly with numerous examples and lessons.

2. John Murphy "Technical analysis of futures markets: theory and practice"

In 1981, the author was asked to teach a 4-month course on technical analysis. The audience consisted of absolute beginners in stock trading. John had a problem: he could not find a suitable booklet for teaching: they were all for people familiar with the subject, or narrowly focused: Elliott waves, point-and-point charts, indicators, etc. Then John decides to write the book himself. The result exceeded all expectations: it was possible to bring something completely new into the world of stock exchange literature: readers liked the book so much that it was dubbed bible of technical analysis...

3. Jack Schwager "Technical Analysis. Complete Course"

This is not just a book. In terms of value for a trader, without exaggeration, the manual ranks first. Written by a recognized expert, it represents a comprehensive guide to technical analysis. The main tool is the chart, the first part presents the theory. The main analytical method described in the work is graphical analysis; indicators are given an extremely insignificant place. The conclusion suggests itself: Schwager, to put it mildly, is not a fan of these instruments; rather, they were included in the collection as reference material.

4. John Murphy "Visual Investor. How to spot trends"

A book from the author of the famous textbook, dubbed the “bible” of technical analysis. 5 years after the presentation of the work, a new book was presented. The success of which, similarly to the first, turned out to be resounding. "The Visual Investor: How to Spot Trends" is a glorious continuation of Murphy's writing and trading talent. I dedicate my work to the viewers of the CNBC program, where I acted as an analyst for several years. Numerous calls and letters from TV viewers are proof of fruitful activity. People began to better understand the behavior of stock prices and trends.

5. Alexander Elder “How to play and win on the stock market”

The author of the book, Alexander Elder, is a man of interesting destiny. In Soviet times, he fled the country, realizing that he would be arrested for his policy of criticizing the Soviet regime.

In 1974 he got a job as a doctor on a merchant ship. And in Africa he ran away from his team. Moreover, he was actually being chased by the ship's crew. In the USA he trained as a psychiatrist and began practicing psychoanalysis. In the late seventies he began trading on the stock exchange and succeeded. 5 years later he wrote a book in English, “How to Play and Win on the Stock Exchange.” I worked for myself, without imagining what success the book would have after publication.

6. Lewis Borsellino "Textbook on Day Trading"

A book by one of America's best traders. A man of twenty years of experience. Lewis Borsellino: stock trading is a job unlike others; many qualities are required from a person, absolute discipline. The book includes the most important lessons for a trader: initial preparation, market analysis, action plan, transaction execution and discipline lessons. In the book I use the methods that we teach “young” traders. I hope they will help you too. The book is called a textbook for a reason - literature teaches you the right actions.

7. Bill Williams "Trading Chaos"

Do you know the truth? She's cruel. 9/10 traders lose money all the time. It doesn’t matter what education a “young” trader has. The statistics are inexorable: many who have achieved great success in business, work and other matters suffer complete collapse on the stock exchange.

Bill Williams assures that he will help traders stop losing money. There are good reasons for this: he has been a trader for thirty-five years (at the time of writing the book), actively trading, and having trained thousands of traders.

9. Joe DiNapoli "Trading Using DiNapoli Levels"

The book from Joe DiNapoli presents a description of well-known concepts and the author's original developments, and is a comprehensive educational approach to trading. What does it mean? There is no boring strategy or mechanized rules in the manual. Instead, the author presents an extensive overview of technical analysis and strategies, showing dozens of ways to make a profit, including his own developments. This is by no means general knowledge, rewriting the works of others, this is a comprehensive guide that traces the author’s vast experience as a teacher.

10. Technical analysis for beginners. (Reuters Finance Series)

This book is a project of the famous company Reuters, one of the leaders in the supply of financial information. Few people know, but the company is already about 165 years old! Many banks and brokerage companies use the information provided by Reuters. This book is about technical analysis for beginners. Covers all the necessary topics to quickly cover all the necessary topics. The material is presented very clearly and clearly. A beginner entering the market is in a stage where a huge flow of information is bombarded, which is difficult to effectively absorb.

11. Akelis Stephen "Technical analysis from A to Z"

The author of the book is an expert in technical analysis, the creator of the world-famous Metastock program. Having started work on creating computer programs for analysis in the distant 70s, today it is one of the leaders in creating software. Over many years of work, a huge amount of practice has accumulated, which resulted in this textbook. Stephen does not focus on one side of the issue, the presentation fully lives up to its title.

12. Michael N. Kan "Technical analysis"

When you start reading the book, you are immediately captivated by the author’s presentation style, which is very simple and aimed at those who are just starting out on the path of stock trading. Michael himself calls himself a translator, and for good reason. He easily translates complex terms, concepts, and logical chains into simple concepts and things for an ignorant person. It turns out to be a kind of easy dialogue, during which you will learn a lot of useful information.

13. Anna Erlich "Technical analysis of commodity and financial markets"

Before us is the first textbook on technical analysis by a Russian author. Written back in 1996, at a time when the ideas of free speculation in the market were just coming to our country, all the literature on this topic was in a foreign language, and the vast majority traded only using fundamental analysis and without a computer. The works of many famous authors are cited as sources for the creation of the book, however, the book continues to be relevant among those interested in the world of speculative gaming. The success is largely due to the clarity of presentation, numerous diagrams, drawings and graphs, making the material look like a convenient summary.

14. Gary Smith "How I play and win on the stock market"

A book by a real stockbroker, and not from a newly minted guru who for some reason does not show results. Gary is honest with the reader - he describes the beginning of his journey as a continuous loss that lasted about two decades. In 1985, Gary lost completely and was ready to quit the game, but at this turning point he had an epiphany. At the time of the book's publication in 1998, Smith no longer had losing years; losing months had become a rarity. Smith methodically brought $2,000 to $650,000. This is not an overnight success, but therefore reliable. 13 years is a long time to be convinced that a trader has succeeded.

15. John Murphy "Intermarket Technical Analysis"

Murphy is a recognized expert and a first-class analyst who shows not just technical analysis, but the relationship between markets. He noticed a long time ago: commodity prices and bond yields most often go in one direction, prices depend on and correct each other. John would later add a dollar to the research. The crash of 1987 will finally confirm the correctness of judgments about the interconnection of markets. The correct assessment of one asset can help determine the future direction of another, and ignoring these relationships has become downright dangerous.

16. Thomas Dorsey "Tic-tac-toe graphical analysis method"

A book about a rare style of market analysis using tic-tac-toe charts. The author is one of those few experts who was able to fully master the art of market analysis thanks to “tic-tac-toe” and can rightfully be considered an outstanding expert in this field. The new method revealed in the book is one of the most accurate and reliable existing types of analysis, it may well compete with the traditional method and is undoubtedly capable of complementing it...

18. Robert Fisher "Fibonacci Sequence: Applications and Strategies for Traders"

To understand what the Fibonacci sequence is, you need to think about the Universe and its order, look at the world around you, nature, stars, planets. It is worth thinking about human achievements in various sciences. In all this there is something that unites everything; it is the law and regularity of the universe. Fibonacci's discovery made it possible to find "divine patterns" that can be traced everywhere...

19. Ralph Elliott "The Law of Nature. The Secret of the Universe"

Here is a book by the father of Elliott wave theory, Ralph Elliott, written in 1946. This work brought together all of Elliott's previous works in a final monograph. Ralph calls the book “The Law of Nature”, through the prism of his discovery, found on stock price charts, he describes the real “Divine Law”, shows the principle by which human society develops, the ancient pyramids were built, and by what rules any processes that can be traced occur everywhere in nature.

20. Jesse Livermore "How to Trade Stocks"

Livermore is a legendary figure in speculative circles. Having entered the “profession” as a 14-year-old teenager, for half a century he has not changed his desire - to earn money by calculating the future course of stocks. Livermore more than once surprised people with his mastery of the stock market: he surprised his mother by returning her 1000 dollars, in exchange for 5, which she gave to help him escape from home. Livermore has more than once revived, like a phoenix from the ashes, wealth that had been lost for a number of reasons. Having a small amount of money, they always became millions in the skillful hands of a virtuoso speculator.

21. Suvorov "The ABC of Currency Dealing"

The book for beginners - the ABC of currency dealing - is an accessible description of trading on the Forex market, a discussion of the main methods of analyzing the market to make a decision on a transaction. The book describes fundamental, computer, technical analysis. Valuable advice on capital and risk management is given, and many trading strategies are given. For clarity, so that information can be grasped on the fly, most ideas are displayed on graphs, diagrams and drawings. The author of this book hopes that the work will help you understand the basic concepts of the foreign exchange market and you will have enough knowledge to set out on the path of a successful exchange player...

Even more books on dozens of stock exchange topics:

Trader's library. More than 150 books about the stock exchange

How to supplement learning from books?

Everyday on weekdays (from 6:30 to 18:30 ) there are free online classes - per weekmore than 50 (!)various lessons - theory and practice of trading. Conducted by teachers in real time, practical lessons are taught real experienced traders.

Free / no registration required. There is a chat. I recommend!

Motivation for learning to trade - results from real traders

millionaires (profitability charts, detailed discussion of work):

P Why do some forex brokers have % of successful clients?

Reaches up to 40%, while for others it does not reach 5% ?

Almost every beginner is faced with the problem of which textbook to start learning the basics of Forex trading with? The TradeHow editors looked into this issue and compiled a list of the most interesting bestsellers on technical analysis.

Best textbooks

Trading is a fairly broad and difficult to understand area of knowledge. The initial stage of education is technical analysis, and this is where the path to success begins. The main thing in textbooks on this topic is an accessible, understandable language for the common man, which gradually takes the student deeper into the specifics of trading.

"Beginner's Course" from Reuters

Textbook cover.

The basics of technical analysis, presented by the popular financial agency Reuters, are outlined specifically for beginners. There is no complicated terminology here; any expressions that are incomprehensible to a novice trader are explained in detail.

The textbook contains 3 main sections:

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More than 20 years in the Forex market;
- 3 international licenses;
- 75 instruments;
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- more than two million clients;
- free education;
Alpari is the No. 1 broker according to Interfax! All you need to get started is just register on the site!

Basics of technical analysis. Its capabilities and scope of application are described.
List of basic graphs, methods of their construction and use.
Indicators and their signals.

The theory is supplemented with practical tasks. Usually, after each section, a beginner is asked to complete a task, for example, name techniques for a certain market segment, or construct a specific linear graph. As knowledge deepens, tasks become more complex.

The book is based on foreign textbooks written in English.

The book is available in two versions:

Printed. It can be purchased in regular bookstores.
Electronic. It can be downloaded for free or purchased from an online library.

For reference! The textbook, published in 2001, is riddled with typos, according to users. Traders advise looking for the 3rd edition, the newest version.

"Technical analysis. Plain and simple" by Michael N. Kahn

Design of one of the textbook editions.

The book is presented for Russian readers in translation from A. Kulikov in 2008, the original title of the textbook is “Technical Analysis Plain and Simple”.

The preface to the educational publication describes 3 main goals:

Teach the basics of technical analysis.
Help you avoid unprofitable trades even at the initial stage.
Teach professional language to traders.

The author tried to convey to readers the basics necessary to start meaningful trading. Each term is clearly explained, sometimes providing a detailed explanation of several paragraphs to explain a concept.

The narrative is illustrated with a large number of graphs and diagrams. A distinctive feature of the textbook is the absence of unnecessary things, no deviations from the topic in the form of memories or stories about the author’s mistakes.

The practical part of the textbook is described on the basis of stock trading, but Michael N. Kahn reassures the beginner by asserting that the trading methods presented are acceptable in any market, that is, the universality of technical analysis is once again confirmed.

After the conclusion, the book presents a dictionary of analytical slang.

You can order the textbook in printed form from online stores, the price varies from 700 to 1800 rubles, or you can download it for free.

"Technical analysis. The Complete Course" from J. Schwager

Jack Schwager is a successful trader who is known to many as the author of a series of textbooks to help beginners and experienced traders. The textbook is translated from English, in America the publication is known as “Technical Analysis”.

The textbook, according to traders, gives the most complete and accurate picture of trading. The book is divided into 5 parts.

In general, the textbook examines 4 types of technical analysis:

computer;
candle;
graphic;
wave.

A large number of examples of unprofitable and profitable trades requires special attention; an explanation for each diagram and graph allows a beginner to better understand the basics of trading.

The cost of a book in a printed version in hardcover reaches 2000 rubles, the electronic edition will cost several times cheaper, 120-220 rubles.

Interesting! The printed book, quite thick, weighing 1.5 kg, has been reprinted more than a dozen times since 1995, and is still popular among newcomers to the trade.

“Technical analysis from A to Z” from Art. Akelisa

Textbook on technical analysis from St. Akelisa.

Stephen Akelis was one of the first, back in the 70s of the last century, to master computer analysis of financial markets. The book with the original title “Technical Analysis from A to Z” describes all the basic concepts and techniques necessary for a novice trader.

The textbook is divided into 2 parts. The first one provides basic terminology with explanations so that even a novice trader can understand important definitions. The second section presents the basic models of charts, indicators, and their necessity in a certain situation. Also, each option is given a brief review by the author describing the advantages and disadvantages.

The book, which contains 366 pages and a sea of useful information, can be downloaded for free on some services that specialize in providing information to traders, or purchased at a price of 700 to 1,300 rubles.

Technical analysis - the new science, Thomas Demark

The author of the book is known to many as the eminence grise of trading; back in 1970, he became a leading analyst at the National Investment Service. According to DeMark, without basic knowledge, certain trading skills and a sense of proportion, no trader can succeed.

In the book with the original title “The New Science of Technical Analysis”, every trader with different levels of training will find a lot of useful tips, all information is presented thanks to the author’s independent experience. Many analysts believe that Demark managed to show technical analysis from a new, unknown side.

Methods for forecasting market situations and analysis, developed and tested over a quarter of a century by the author himself, have been adopted by many traders who have already achieved good results in trading. Tools such as breakout qualifiers and determination of false and true level interruptions are offered for use. For beginners, this publication should become a reference book; it will help you apply smart tactics from the very beginning.

Any successful trader must know the basics of the theory of technical analysis and be able to competently use it in practice. Without this, there is no talk of any stable income. Therefore, it is worth starting with any book from this list, and then improving your professionalism with the help of other sources.