Most trading books cover trading strategies volman understanding price action in forex use a mix of candlestick patterns, chart patterns, and indicators. While they offer a rounded view of trading methods, they are inadequate for traders who want to focus on trading price action.
Indeed, price action trading books are rare finds. After some intense digging and reviewing, we have rounded up 10 solid price action trading books. They are not listed in any order. Pick one based on your current trading style and skill. Clicking on the book images brings you through our affiliate links to Amazon product pages where you can read more reviews by other traders.
The review score is taken from Amazon at the point of writing this article. Please buy through our affiliate links if you find this list useful. Trading Price Action Series by Al Brooks This series of three price action trading books has become an authority on price action trading. Price action trading originated from the Dow Theory, and traders have discussed various price action trading techniques long before Al Brooks’ books. Although Al Brooks did not invent price action trading, he certainly created a point of reference for price action traders. While these price action concepts are definitely not unique and have been known by other names, Al Brooks has added great value by combining them into a comprehensive system of analysis and trading terms.
The Wikipedia entry on price action trading is almost like a summary of these three tomes. You must be a serious trader. However, if you are serious about learning price action trading, you will definitely find value here. If you want to start with something easier on the palette, consider our other recommendations below. Forex Price Action Scalping by Bob Volman Bob Volman focuses on a specific price action trading style that is not suitable for everyone.
He scalps small profits out of the forex market using the 70-tick time-frame. And compared to Al Brooks’ price action series, this price action trading book is highly readable. To me, that is a huge plus for any trading book. While Al Brooks describes a system of analysis with less focus on exact trading setups, Bob Volman explains seven clear trading setups. Hence, if you are looking for precise trading setups for scalping, Bob Volman’s book is what you want.
If you want to acquaint yourself with his methods before deciding if you want to buy it, take a look at these forum threads. Of course, without reading the book, these threads provide limited value. However, they offer perspectives from traders who have already tried his methods. Update: Bob Volman published a new book on analysing price action on the 5-minute time-frame. The choice of topics is fantastic. This price action trading book gives you everything you need to start learning price action analysis. It is not a book that teaches you how to trade with trading setups with a complete trading plan.
However, it is one of the best for picking up price pattern tools that will help you trade profitably. The book also comes a DVD that has a seminar given by Martin Pring on the latest tools for price pattern recognition. Japanese Candlestick Charting Techniques by Steve Nison After Steve Nison introduced Japanese Candlesticks to Western traders, the candlestick chart has become an essential feature of any charting platform and the default chart type of most traders. For many traders, life is never the same, and a lot brighter. Poetic names like Engulfing, Hammer, Shooting Stars are now commonplace among price action traders.
While information on candlestick patterns is easily found online for free, they are loosely organized and hardly comprehensive. For a reliable and organized way to learn candlestick charting, get Steve Nison’s book. Integrated Pitchfork Analysis: Basic to Intermediate by Mircea Dologa Trend line analysis is a key price action trading tool. However, trend lines usually occupy at most a chapter of any price action trading book. Andrew’s Pitchfork is the only trend line trading method that has entire books written on it. While Andrew had a unique way of drawing his trend lines, price action traders can adapt his trading techniques easily for traditional trend lines and price channels. There are several books on Pitchfork analysis, but this one written by Dr.
It is clearly written with a comprehensive scope and well-pitched for beginners who have never heard of the Pitchfork. Also, we could not help noticing the great reviews from well-known technical analysts like Chuck Lebeau and Dr. The Ultimate Trading Guide Being an ultimate guide, it is not surprising that this book has three authors: John Hill, George Pruitt, and Lundy Hill. This book is geared towards developing mechanical trading systems with price action behavior. Overall, it does an excellent job of deriving exceptional trading setups from price action. Traders looking for new trading ideas should find interesting stuff here.
The Yum-Yum continuation pattern is an example of a setup from this book. A Complete Guide to Volume Price Analysis by Anna Coulling I decided to include this book because many price action traders use volume in their price analysis. And notably, Al Brooks does not feature volume in his trading methods. Hence, this book is a great complement to the Trading Price Action series for traders who like to include volume into their trading. This book is a concise work that covers everything you need to know about volume analysis. Anna Coulling’s description of how and why volume analysis works is easy to follow. Although volume is a key ingredient in Dow Theory, most traders find it hard to truly understand the impact of volume in their trading.
Most volume trading methods are obscure and difficult to implement. In her book, Anna Coulling has managed to keep things simple and practical. This book is a real bargain for traders looking for their first book on volume analysis. Encyclopedia of Chart Patterns by Thomas Bulkowski Wondered if chart patterns are reliable? Thomas Bulkowski’s encyclopedia tells you far more than that. While this book does not prescribe an exact trading strategy, it has more than enough facts and figures for you to build your own trading tactics and to have faith in the patterns you are seeing. This book has no equal when it comes to a statistical study of price chart patterns.