Does technical analysis sound too complicated? But, doesn’t everything initially? Many traders learn technical analysis as it enhances their calculations and predictions related to market movements.
Many traders learn the basics of share market in Hindi or English, then go on to become experts in their respective fields of trading or investments. That is why the art to learn technical analysis becomes really crucial.
Technical Analysis is an excellent tool to understand the complex charts and other trading factors in the stock market. So, before we jump at the first opportunity to learn technical analysis, let’s first answer the question – what is technical analysis?
What is Technical Analysis?
Technical Analysis is a tool used to evaluate financial securities and take a call on investment. It also helps identify trading opportunities after scrutinizing the statistical trends and historical data of the particular financial security.
Before we start discussing the concepts of technical analysis, do you know who introduced it? It originated back in the late 1800s by the Dow Theory, formulated by Mr. Charles Dow.
Many noteworthy people contributed to the theory and formed its basis. Some of these renowned researchers are William P. Hamilton, Robert Rhea, John Magee, and Edson Gould.
The present-day technical analysis is a compilation of evolved patterns and signals over hundreds of years.
The trends collected are related to price movements and trading volumes. This analysis talks about the alternations in the price, volume, and implied volatility of a security. The tools scrutinize how demand and supply affect the market.
Short-term trading signals are generated using technical analysis tools such as charting tools; this helps improve traders’ or investors’ evaluation of the strength and weakness of the security.
Usually, technical analysis is used to evaluate stocks, but it can be conducted on any financial instrument such as stocks, futures, fixed income, currencies, commodities, and many more.
Technical analysis is prevalent among the commodities and forex markets as these traders and investors focus on short-term movements of the market.
Now that we understand what technical analysis is, let’s move ahead and discuss how to learn technical analysis.
How to Learn Technical Analysis
Learning has been transformed with easy access to the internet. You can learn stock market via multiple platforms that can be offline or online. The most popular ways to learn technical analysis currently are listed below:
- Mobile Applications
- Video Courses
Before we discuss them in detail, we must understand a very important aspect of selecting the right way to learn technical analysis.
The significant factors to consider before you invest your time and energy with any of them are as follows:
⭐ Points Covered
⭐ The medium of Content (Text, Audio, Video, etc.)
⭐ Content Quality
⭐ Is it in Line with your Requirements?
⭐ Language of the Course
⭐ Accessibility to the Course Material
⭐ Duration of the Course
So, before finalizing the learning method, make sure this checklist is all checked or at least the majority of it.
Now, let’s discuss each one of them in detail.
The digitization of the education industry has led to enhanced learner experience and eased learning away from the formal education system. Many people prefer learning online rather than attending institutions for certification.
They are gaining popularity at a very high rate and are responsible for the revolution in the industry. These applications are leading the education industry by example, by providing educational content in the most engaging and entertaining ways.
They have changed the ways of learning by providing the content in various formats like – Videos, Audio, Text, Live Sessions, etc. Before this educational revolution, the only source of learning was textual content.
All these options in the format enable the learner to choose the most suitable format for learning. Thus, the ways to learn technical analysis have been increased with the accessibility of mobile applications.
Books have proved to be a timeless source of knowledge. No matter what, books are the most reliable when it comes to information. There are several books for technical analysis available in the market. You can choose one of the best stock market books and maximize your profits.
Books are also a popular way to learn for people who wish to learn while they experience the fun of reading. So, let’s list a few of them for the lost learners.
1. Getting Started in Technical Analysis | Jack D. Schwager
This book is authored by Mr. Jack D. Schwager and was published in 1999. The author is the CEO of Wizard Trading, which is a commodity trading advisory firm. The firm was established back in 1990.
He has also authored other books like The Complete Guide to the Futures Markets, The New Market Wizards, Market Wizards, Technical Analysis, and Fundamental Analysis.
The book is written in a way that lays a strong foundation for the topic. The reader is set to learn technical analysis with the least setbacks as it is full of examples.
The book also covers the basics like trading ranges, trends, chart patterns, etc., in detail. It is also a fantastic trainer for the mechanics of order management in the form of entry, stops, exit, and pyramiding techniques, etc.
This book is a compilation of Mr. Schwager’s experience of being a real-life trader and is considered one of the best books to learn technical analysis.
2. Japanese Candlestick Charting Techniques | Steve Nison
The book is authored by Mr. Steve Nison and was published in 2001. The author is known to be the best when it comes to the art of using candlestick charting.
He owns and runs a firm named – Nison Research International that provides technical advisory and seminar services to many financial firms. He has presented his skills to the members of the World Bank and Federal Reserve.
Due to all these achievements, he is among the most sought speakers. The uniqueness of this author is what makes this book one of the best to learn technical analysis.
Japanese Candlestick charts are a form of technical analysis and are versatile enough to be amalgamated with any other tool. It helps in improving the market analysis of any technician, i.e., anyone who conducts market analysis.
This tool can be used to speculate, and hedge futures, equities, or any other financial instrument technical analysis can be applied.
The book is written in an easy-to-understand language and compiles the author’s experience of several years.
The book talks about the basics and concepts that are extremely necessary to evaluate the market with ease. It also has many examples to make the content relatable for the readers.
3. Technical Analysis of the Financial Markets | John J. Murphy
This book is authored by Mr. John J. Murphy and was published in 2015. The author is a renowned financial market analyst from America and is considered as the Father of Inter-Market Technical Analysis.
He has authored several other books like Technical Analysis of the Futures Markets, The Visual Investor: How to Spot Market Trends, Intermarket Analysis, and Trade Secrets.
This book is the broadened and revised version of his previous book – Technical Analysis of the Futures Markets. The book on financial markets is a comprehensive guide for traders.
The author attempts to ease the learning process of traders about the complicated bridge between the share market and technical analysis. The book comprises indicators, technical tools, and other important information.
This book is home to ultra-modern examples and quotations of the stock market, making it easy for the readers to comprehend. These factors make it fantastic to learn technical analysis.
4. Encyclopedia of Charting Patterns | Thomas N. Bulkowski
Thomas N. Bulkowski is the author of the book – Encyclopedia of Charting Patterns and was published in 2005. The author has experience of more than 25 years in the trading industry as a successful investor.
He has also authored another masterpiece Trading Classic Chart Patterns and is a contributing writer to many others. He also has written for many magazines.
The author has added the new 23 patterns and performance statistics for bull and bear markets in the latest version of the book. He also added a dedicated section for ten event patterns.
The book is a must-have for beginners to learn technical analysis and is a comprehensive reference book for a technical investor or trader. The book has detailed chart patterns, and this information makes it stand out.
5. A Complete Guide to Volume Price Analysis | Anna Coulling
The book – A Complete Guide to Volume Price Analysis is authored by Ms. Anna Coulling and was published in 2013. She has experience in the trading and investing market for more than 17 years.
The author attempts to explain the complex concepts and subjects of the financial markets in an easy and straightforward way.
Since she faced many problems in understanding them, she wishes to devote her time to help others by easing the process to learn technical analysis.
The book will guide you from the basics to principles and everything you need to know to become a professional.
Irrespective of the fact that you are a long term or a short term investor, this book will provide you with the best information possible.
The book sets you on a path that leads to success equivalent to that of the iconic traders of the past.
The digitized and short version of books is blogs. Blogs have taken the education industry by storm. Many traders and investors with an in-depth knowledge of the field have started sharing their experiences on the internet.
The best way to put yourself out there these days is to start writing blogs about it. Blogs have emerged as competition to books. Further, they are a great source to read while you surf the internet and have the fun of reading.
These blogs help beginners and professionals learn technical analysis in the easiest way and make the subject approachable.
The content available on this video blogging site is majorly free, and thus the content quality can’t be trusted without a thorough evaluation. The content creators on YouTube are varied in terms of the quality of content.
Some provide mind-blowing content and are trusted by thousands and millions. Others might not be as trusted and valued by the consumers. So, be very careful.
You must conduct a proper examination of their videos before you dive into their content with everything. Trust the creator after you go through his credentials and qualification.
- Video Courses
Another way to learn technical analysis is through video courses. These courses can either be live-streamed or pre-recorded, depending on the educator.
Many learners prefer this form of learning as it is considered one of the best ways to learn efficiently, and this fact is backed by many scientific pieces of research.
Generally, the learners have to pay a hefty amount to access these courses. The most perplexing aspect here is that the course is not directly related to the cost.
Thus, check the educators’ credentials to make sure you are not fooled over the internet.
Best Way to Learn Technical Analysis
With the reducing time to engage in various activities or become an expert in the field of your interest, people are moving towards portable learning ways.
These ways have been revolutionized with the introduction of mobile applications.
Due to this demand for learning anytime and anywhere, mobile applications have become very popular among learners. Surprisingly, this demand is not exclusive to the stock market education industry.
One application in stock market education is Stock Pathshala. Click here to download the app from the google play store.
The various features of this application have been listed below:
- The courses are written in a language that is easy to understand.
- Courses have been developed in multimedia formats – Text, Audio, and Video.
- The application is accessible in English and Hindi.
- Has simplified Stock Market education.
- ‘Shorts’ is an exceptional feature that explains stock market concepts in less than a minute.
- Provides reviews on all types of stockbrokers, IPOs, PMS companies, and much more.
- A small quiz follows every chapter in the courses.
- The courses are multilingual. They provide the stock market courses in English, Hindi, Gujarati, Telugu, and Tamil, and they are going to add in many more languages soon.
- Courses available in the application cover various aspects of the stock market, from basics to derivatives. You can also learn fundamental analysis, technical analysis, and other indicators and oscillators.
- The courses are divided into two categories – Free and Paid.
- Lastly, the app offers various offers for brokerage discounts, opening a demat account, and many more!
Having these features makes the application stand out from the plethora of mobile applications available in the market.
Happy learning, folks!
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