"Technical Analysis" by John J. Murphy

Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

by John J. Murphy

http://www.amazon.com/Technical-Analysis-Financial-Markets-Comprehensive/dp/0735200661/ref=cm_lmf_tit_1_rdsssl0/103-6640961-8433428

"The Bible" as many a trader refers to it. Murphy's "updated" version of the technical trading techniques classic is now a bit dated itself (often referring to the wonders of "CD-Rom" drives and the like), but nonetheless retains all its punch. Basically Murphy gives a comprehensive beginner's overview of pretty much all the main tools of technical trading: chart reading, trend following, oscillators, systems design concepts and the like. He doesn't always go into hyper-detail (despite the book's size, it is actually a pretty quick read with big text and lots of charts and illustrations) and you'll need to go elsewhere in some cases to see how a technical indicator is calculated/built or to get a comprehensive review of things like candlestick patterns. However you will absolutely get a thorough introduction and now how to look for deeper knowledge with the next book you hit.

The book also comes in handy as a good basic reference source. You don't need to read it cover to cover (though I did and certainly recommend it for those new to the topic), you can go straight to the relevant chapter and get a quick refresher on the key principles on any given tool or technique. A must-read for any trader or anyone who needs to understand basic trading principles.