Contents of this article
If you are an investor or someone passionate about studying the stock market, Essentials of Technical Analysis for Financial Markets – James Chen is a book you cannot miss. Dr Alexander Elder – author of The New Trading for a Living – once said: “This is a serious, practical book, an excellent introduction to technical analysis with clear and concrete examples”
Essentials of Technical Analysis for Financial Markets PDF – James Chen
Who Is James Chen?
James Chen was chief technical strategist at FX Solutions, one of the leading companies in foreign exchange trading. He is an expert in technical analysis and market trading, and he holds two respected technical analysis designations, the CTA and the CMT.
He has regularly contributed daily technical analysis to major financial media outlets. Chen often speaks at large trading conferences and has written many articles on strategy and technical analysis for leading financial magazines.
Essentials of Technical Analysis for Financial Markets is regarded as his most representative work, the book that made James Chen’s name. It is considered an introductory text for new investors starting to learn the technical analysis approach to financial markets. It covers the fundamentals of technical analysis: its concepts, its strengths and weaknesses, its principles, indicators and trading strategies, and how to manage risk as effectively as possible.
A Look at the Book’s Content
In the first chapter of Essentials of Technical Analysis for Financial Markets the author focuses on the basic concepts of technical analysis and how technical analysis differs from other ways of studying the market. This clear comparison helps new investors understand that each school of analysis suits a different view of the market. Fundamental analysis is mainly concerned with “why” prices move, while technical analysis focuses on “how” prices move…
A look at the book’s content
In the following chapters James Chen analyzes the book’s main topics in detail: the history and strengths of technical analysis, the basic chart types, the main charting tools, chart patterns, and the main types of indicators and oscillators…
All of the content is distilled from core theory combined with practical experience. It is broad and easy to understand, and the chart illustrations help readers relate it more readily to real markets.
The final chapter of Essentials of Technical Analysis for Financial Markets deals with risk control and money management, the two factors that decide whether or not you succeed as a trader. Technical analysis plays an important role in carrying out a suitable money management and risk control strategy. Scaling into smaller positions is a good way to spread and control risk: instead of opening one large position, open several smaller ones. This is considered an effective way to take profits, because traders can protect their gains while keeping part of their position open to pursue larger profits.
Although many analysts are interested in a range of analytical techniques, the author stresses that successful investors tend to focus on one or a few aspects of technical analysis. Once you thoroughly understand a particular method, such as drawing trendlines, using indicators like RSI, counting Elliott Waves or using Fibonacci, your path to success becomes easier. In short, keep it simple by mastering one or a few core aspects of technical analysis instead of trying to learn a little about many different areas.
The book offers guidance for understanding the basic methods of technical analysis. It covers many topics, each with a detailed explanation backed by research and the long experience the author gained over his career.
Our Thoughts on Essentials of Technical Analysis for Financial Markets
This is a truly excellent book, of great value to investors at almost every level. Essentials of Technical Analysis for Financial Markets will give you knowledge of technical analysis from the basics through to advanced topics.
The book provides concrete guidance that helps readers understand the basic methods of technical analysis. Each topic is presented in a detailed, systematic and engaging way. Once you have a firm grasp of what it covers, your road to success will become ever smoother. In short, the book gives investors and traders the broadest possible overview of the tools and systems of technical analysis.
Michael Covel – author of “Trend Following” once said: “Trend-based technical trading is the most important lesson for all investors, and Essentials of Technical Analysis for Financial Markets is a great place to start. If you choose to ignore technical analysis, I guarantee you will have a very hard time making money.”
Technical Analysis Course – CMT Level 1
Green Chart designed this course specifically for candidates in Vietnam who want to study and prepare for the CMT Level I exam. The program includes 27 sessions of theory, practice questions and mock exams. Students also receive the study materials, question bank and mock exams free of charge to support their exam preparation, and can retake the course for free for life.
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Download the PDF of the book HERE.
“Stock Trading For A Living” Course
Green Chart designed this course to build a solid foundation in fundamental analysis & stock valuation (Fundamental Analysis), while showing students how to integrate it effectively into their existing trading system, especially for traders who already use technical analysis (Technical Analysis). The program includes 5 theory sessions and 6 months of hands-on trading guidance in the live market with the instructor.
See full course details here.
