Cryptocurrency – A Trader’s Handbook by Neuefeind and Kacperczyk: Instead of providing an introduction to the criptocurrencies like many other books, this book goes depper in the world of crypto trading. In this book, you will find information about fundamental analysis; furthermore, you will find information about technical analysis. In the technical analysis section, an individual can expand his/her knowledge and start learning about Japanese candlesticks, chart patterns, stop-losses, price oscillators, resistance and support, and more.

Cryptocurrency by Abraham White: This book provides an introduction to the most important cryptocurrencies, such as bitcoin, litecoin, ethereum, and others. Furthermore, in this book, you will find a little bit of information about mining, blockchain, wallets, and investing. Although this book doesn’t goes depper in the crypto technologies, it provides an introduction to the most important points that a newbie should know when he/she is starting to learn about bitcoins and altcoins.

Virtual Tax – The Taxation of Virtual Currency by Amy Wall: In this book, you will find information related to taxes of cryptocurrencies; for example, in this book, you will find tax information about buying and selling cryptos.

Technical Analysis of the Financial Markets by John J. Murphy: If you are a trader who has been reading basic books about technical analysis and is looking for a professional book that goes deeper in the world of technical analysis, this classic work written by John Murphy can give you the kind of vision and knowledge that you need to become a professional trader. As Issac Newton once said: “If I have seen further it is by standing on the shoulders of Giants”. One of the best ways to see further than others is by reading those classic books that were written many years ago by those professionals or giants who stood out in a field of study.

In this classic work, you will find more than 500 pages related to technical analysis (TA). As you can see, those are some of the most important TA topics that you will find in the Murphy’s book:

  • The Dow Theory
  • Chart Construction
  • Trend Concepts
  • Reversal Patterns
  • Continuation Patterns
  • Volume and Open Interest
  • Moving Averages
  • Oscillators and Contrary Opinion
  • Japanese Candlesticks

In this section, I am going to explain some of the most important concepts that an individual or trader should know when he/she is starting to learn about technical analysis. To put it another way, I will use this section to explain different kinds of technical analysis concepts, such as support level, resistance level, trading channel, chart patterns, and other concepts.

  1. Support Level: A support level is the lowest price that a security is going to fall in a short/long period of time, which can be hours, days, weeks, months, or more. If the price of a security goes lower than the support level, it means that the support level is broken.
  2. Resistance Level: Unlike a support level, a resistance level is the highest price that a security is going to rise in a short/long period of time. Similar to the support level, the resistance level is going to be broken if the price of a security goes more than its price level; in other words, the resistance level will be broken if the security price goes higher than the level of a resistance.
  3. Trading Channel: Also known as a price channel. After identifying a support and resistance, a trader can use both trendlines to draw a channel, which will be known as a trading channel or price channel.
  4. Chart Pattern: Also known as a price pattern. It is a chart formation due to the movement of a security.
  5. Trading Volume: An individual or trader can see the volume when he/she wants to know how much a security (cryptocurrency or stock) was traded during a particular period of time, which is usually a day.