Getting Started With Technical Analysis

Getting started with technical analysis

The best way to start using technical analysis is to approach it as you would any subject that you wanted to learn more about and do your homework. 

A growing numbers of resources, including books and articles, are available both in print and online formats. Many websites provide educational content in the form of videos, webinars and chat rooms. You might want to start by learning about the different types of technical indicators, including those that measure momentum, trend, volatility and volume.

Steps in Technical Analysis Learning

1.      Basic Knowledge
1.1   Books to Read

2.      Online Courses

3.      Resources
3.1   Related blogs

4.      Certification


1.     Basic Knowledge

1.1   Books which helps in understanding the basics of Technical Analysis


·         Technical Analysis of Stock Trends by Robert D. Edwards and John Magee – this is without a doubt the bible of Technical Analysis. It’s a must read for anyone who takes this market seriously.
·         A Beginners Guide to Charting Financial Markets by Kahn - this is the most easy to read and easy to understand books in the history of technical analysis.
·         High Performance Trading by Steve Ward - the way he explains how to benefit from using more than just one timeframe is the perfect complement to all of these other books.
·         Technical Analysis and Stock Market Profits by Schabacker - It would be suggested to read this one first, before getting into Edwards and Magee. But you have to read both
·         The Way to Trade by Piper - Everything that you need to know about Technical Analysis, their history is in this book.
·         Future Trends from Past Cycles by Millard- This book helps you to think outside the box and explains how to manipulate different oscillators so you get signals that others wouldn’t because they use default settings.

1.2 Websites with free charting


1.      StockCharts.com
Stockcharts.com takes the #1 spot for its simplicity, cleanliness, and overall scalability. It is the most widely utilized free stock charting site for financial bloggers and is also the primary charting service used here at StockTradingToGo. The site offers a wide variety of different free tools and ways to analyze any stock chart desired. For investors who want historical charting and further analysis they can upgrade to a paid subscription.

2.      YahooFinance
Yahoo Finance provides a similar charting service to Google Finance just less the extra bullet points highlighting key dates. Yahoo’s charting service is clear, easy to use, and great for regular investors which are why it is #2 on this list. Yahoo Finance is also the go to place for quotes, research, news, etc.

3.      TradingView.com
TradingView.com offers a clean and flexible way of looking at stock charts. These stocks charts are community driven to provide analysis in the form of annotations on each chart. Personally, I disable these as they can be distracting, however. Community aside, Trading View also supports extensively flexible and detailed charts, not too mention better pricing than StockCharts.com for those who want access to advanced featured and/or real-time data.

4.      GoogleFinance
Google Finance provides a very clean charting solution for investors. Two of its nice features include the ability to see what key events occurred on major days for the stock being analyzed and the ability to easily look back in time an analyze a stock’s historical performance. Comparing multiple charts or indices by having them overlap is also a breeze.

5.      FINVIZ.com
FINVIZ charts are simple, easy to read, and include technical analysis overlays on them by default which is something the other chart providers do not do, making it unique.
Finviz.com

2.     ONLINE COURSES (FREE)

(i)                 Forex Technical Analysis Program

(ii)               Elliott Wave Program

(iii)             Forex Trading Course

(iv)             Trading Introduction Course


3.     RESOURCES

3.1 RELATED BLOGS

·        Ino.com Traders Blog

Adam has some good general market analysis and trading updates. You'll also find some good guest posts from other stock traders.

·        StockCharts.com

StockCharts.com is my go-to source for stock charts and their blog posts are usually very informative.

·        The Kirk Report

Charles doesn't post very often but when he does it is worth reading. Charles also has a highly rated membership section.

·        On The Edge

This is the blog for Alan Farley, author of The Master Swing Trader. Always worth reading to get inside his head!

·        Abnormal Returns

Tadas finds the top blog posts from all over the financial blogosphere. I read this daily to keep up with the latest stock market news.


3.2 BUSINESS CHANNELS



CNBC TV 18
NDTV PROFIT
CNN IBN
CNBC AWAAZ
ET NOW
BBC
BLOOMBERG

4.     CERTIFICATION


4.1 CERTIFIED TECHNICAL ANALYST (CeTA) PROGRAM


Globally, the Technical Analysis industry is represented by the International Federation of Technical Analysts, USA (IFTA) and The Association of Technical Analysts (ATA) being an affiliated society of IFTA represents this industry in India.

As part of the ATA's objective of promoting greater use and understanding of technical analysis education, ATA's Education Committee have launched the professional course in Technical Analysis for both beginner and experienced analysts.

The main aim of the ATA's Certification is to certify that the candidate acquires the professional knowledge, understanding and skills to pursue a career as a Technical Analyst in the Financial Services industry.



4.2 Certified Financial Technician (CFTe): Level I

ATA and other member societies recognize that IFTA's Certifications represent the highest achievement and recognition by peers in the Technical Analysis community.



3 comments:

rajnish singh said...

Hi: Nice article, but couple points worth making:

a. We can’t confuse the evaluation of equities as a valid asset class with the timing of that investing. It’s true that investing in US equities at the present time – due to the run-up in the market, ultra low rates etc. mightn’t be a great idea. But in the grand scheme of asset classes, U.S. Equities are probably still a better than average vehicle to invest in, in the long run.

b. I want outsized returns: all discussions on return must be framed against a discussion of risk. The risk-return argument for starting your own business is very different from a risk-return argument on a well-run large cap company. I suggest readers both options logically and independently. Finally, i don’t think it is a useful attitude to approach equity investing as a gamble to hit the jackpot. The best, long term investors make solid singles and doubles that build into sustainable returns in the long haul.

I think you might have been better off titling the article:

Thx Rajnish
Stock Tips


ranjith poojary said...

I want to dig up deep into the technicals..
Im gonna use these guidlines

anushka pandit said...

I must say very helpful article you shared on technical analysis learning. I read each line and I grab the basic knowledge about technical analysis. I really appreciate you for your good work.
Stock Tips