Today, we’re going to take a look at some of the best price action books.
The trajectory of the price over time is the price action.
Price action trading is carried out with the help of price charts.
This forms the basis for the technical analysis.
The patterns on the chart help traders predict price moves and trade on them to earn handsome profits.
Contents
- Al Brooks Troika
- Trading Price Action Trends
- Trading Price Action Trading Ranges
- Trading Price Action Reversals
- Price Action Breakdown: By Laurentiu Damir
- In Depth Guide To Price Action Trading: By Laurentiu Damir
- The Ultimate Price Action Trading Guide – By Atanas Matov
- Understanding Price Action: by Bob Volman
- Japanese Candlestick Charting Techniques – By Steve Nison
- A Complete Guide To Volume Price Analysis – By Anna Coulling
- A Piece Of Advice
Using charts and technical analysis, price action help traders identify trends, reversals, breakouts, and other price movements.
These trends are not always accurate, and it takes a great deal of effort and experience to spot them.
However, with proper practice, a trader may earn handsome returns.
If you are thinking about getting into price action trading, you need to have a solid understanding of price charts and patterns.
Some or most of these charts, candlesticks, and other features can be very confusing.
We have collated some books to help you get the hang of it.
My choices are included here.
Al Brooks Troika
The three books by Al Brooks give a detailed overview of trends, trading ranges and reversals.
He is an MD. Al was a practicing ophthalmic surgeon but switched careers and has been engaged in trading for the past three decades.
You may not trust him to be a good trader, but he has trained traders at the Chicago Mercantile Exchange, which provides him immense credibility.
The three books by him simplify reading charts which can be difficult for new traders.
Each of these books is available for under $50 for both Kindle and hardcover versions.
We will investigate the three books in the recommended sequence in which to go through them.
Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader:
The first recommendation works on trends or continuing patterns.
They are comparatively easier to spot while they form.
This book is unique because it teaches you how to trade even 5-minute charts less affected by market direction and economic factors.
Two of the most important features include:
- Institutional trend recognition and trading.
- Time tested trading approach.
Trading Price Action Trading Ranges: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
This book includes trading between price levels (ranges). It covers breakout, support and resistance, which helps identify the price direction.
The book is highly detailed and runs over 600 pages, and guides a trader in marking entry and exit points to maximize profits.
Trading Price Action Reversals: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
The third book in the series covers reversals which is the change in a continuing trend.
Reversals can help prevent loss or earn gains depending on the change in the trend.
The major areas that an investor can benefit from include:
- It helps to trade in a volatile market and swift reversals.
- Includes derivatives options and shows how to apply them.
- Touches upon behavioral aspects while trading.
The book is nearly 575 pages, and you can have it on your shelf for less than $30.
Price Action Breakdown: Exclusive Price Action Trading Approach to Financial Markets – by Laurentiu Damir
Laurentiu Damir is aptly experienced with over 14 years of experience in trading and has written several books on technical analysis.
A number of these books have received good reviews. Price Action Breakdown seems to be his crowning glory.
Available for less than $10, this book seems a steal.
What sets it apart is that it helps understand market moves through charts, not just for stocks but also for forex, futures, and commodities, using only supply and demand levels.
This is a godsend for an investor who has difficulty understanding charts as no indicators or patterns are used.
With only 108 pages, one can go through the strategies in very little time.
In Depth Guide to Price Action Trading: Powerful Swing Trading Strategy for Consistent Profits – by Laurentiu Damir
This is another book from Laurentiu Damir, only 102 pages and priced at $6.06 for the Kindle edition.
It is different from the previous book as it uses technical tools to describe several strategies based on ranges, trends, direction, etc.
This will help the reader help identify pattern changes and to include protective stops in the strategy.
It also touches upon congestion and confluence areas, Fibonacci retracements, risk-reward ratio, among other technical cues.
The Ultimate Price Action Trading Guide – by Atanas Matov
Atanas Matov is an experienced investor based in London and provides trading tips through online mode.
To date, he has trained more than 10,000 traders.
The book is only 94 pages but gives a good overview of technical indicators and trading ranges.
Some investors may consider it basic, but it is easy to understand and could be a starting point for novice traders.
At $6.06, it won’t hurt your pocket and can be a valuable addition to your shelf and trading.
Understanding Price Action: practical analysis of the 5-minute time frame – by Bob Volman
The book by Bob Volman can be used both by a budding trader or a professional one.
While the book includes technical charts and strategies that you can learn elsewhere, it has something unique.
It provides a 6-month long period divided into 5-minutes sessions.
They help identify changes in a short period which can help earn intraday profits.
This is further enhanced by the use of nearly 400 charts which include a majority of trading patterns.
The book has 434 pages and costs $35.91.
It may take some time to go through the charts, but they can be directly applied to trading.
Japanese Candlestick Charting Techniques – By Steve Nison
Steve Nison is regarded as the first person to introduce Japanese charting techniques to the world.
He has garnered over three decades of training experience, and who better to tell you charting basics than him?
His book might be old, but the second edition released in 2001 comes with some major updates:
- New charts for intraday trading.
- It covers newer techniques that can be executed using computers.
- Expanded swing trading section.
- It introduces Risk reduction techniques leading to capital preservation.
A Complete Guide to Volume Price Analysis – by Anna Coulling
Anna did not start as a finance professional but became curious while dealing with her own financial advisors.
Her book will set you back only by $2 for a Kindle version but has been highly rated.
The 193 pages can benefit both long term and short-term traders.
A piece of advice
Like we tell every trader, the books are a start, but the trading floor (virtual one from an app) is the best teacher.
The books will give you a start, but good profits would come only from experience and holding your nerves at crucial moments.
Frankly, short-term trading is not weak of heart, and I would suggest passive investment.
However, the risks are accompanied by extra returns, and if you make up your mind about it, you are more likely to succeed.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
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