Wednesday, December 27, 2006

Books, Indicators and current charts: answering e-mails

Why haven't you posted any charts or watch lists lately?

Due to factors such as low volume, this time of year can make for tricky trading, and I've noticed that charts don't hold up well. I'm still watching the usual suspects, but I don't feel there are many really strong charts right now. Once we get into the New Year, we'll be back to normal and I'll be posting tons of charts.

Can you recommend 2-4 good books that you have read about trend trading and/or short term trading?

Here are a few of my favorite trading books:

The Master Swing Trader by Alan Farley:
This book is not an easy read, but if you stick with it you'll find some really good tips and trading setups.

Trading in the Zone by Mark Douglas:
I managed to pick up a few nuggets from this book. The most important was understanding how our decisions are based on our belief systems.

Getting Started in Chart Patterns by Thomas Bulkowski
If there was only one book I could read, it would be this one. Great analysis of chart patterns.

I am currently reading Brett Steenbarger's new book, Enhancing Trader Performance. It's been a real treat so far, and I hope to have a review posted in the coming weeks.

What one indicator could you not live without?

To be honest, I really don't need any indicators, even though I monitor a few. Support and resistance, price bars (candlestick), patterns and volume are much more important for my style of trading. However, I do like using RSI for measuring divergences, stochastics for monitoring extremes and bollinger bands for volatility readings.

1 comment:

felix said...

thanks for the tips. I will check out those books and the indicators