These are the 6 best books to read about technical analysis in the stock market

"Reminiscences of a Stock Operator" by Edwin Lefevre was first published in 1923 and was inspired by the life of famed trader Jesse Livermore, who won and lost fortunes multiple times through trading the stock market. The book chronicles the ups and downs of Livermore's trading career from when he worked in bucket shops as a kid in the late 1800s, up until the 1920s.

Livermore is most famous for shorting stocks right before the Great Depression crash of 1929, making him a fortune. The book is a cautionary tale in trading, and helps explain a lot of the psychology that drives traders and investors. Ultimately, Livermore took his own life after again losing his fortune in 1940.

"Extraordinary Popular Delusions and the Madness of Crowds" by Charles MacKay was first published in 1841. But despite being nearly 180 years old, much of the content still rings true today. The book is separated into three volumes, and investors interested in technical analysis should focus on the first volume, which is focuses on historical economic bubbles.

From the South Sea Company bubble of the early 1700s, to the Dutch tulip mania of the 1600s, the book helps explain the thought process of investors who are eager to participate in securities that rise astronomically despite being disconnected from their fundamental values. What's most interesting is how the charts of economic bubbles that occured more than 400 years ago look eerily similar to recent market bubbles like bitcoin in 2017 or the dot-com bubble of 2000.

The reason why the charts look so similar despite being hundreds of years apart? Because human psychology hasn't changed, especially the two emotions that drive financial decisions: fear and greed.

"Technical Analysis of the Financial Markets" by John Murphy is an essential book for novice investors who are interested in learning about technical analysis. The book, written by the chief technical analyst of StockCharts.com focuses on inter-market analysis, widely followed technical indicators, candlestick charting, and more.

The book not only explains popular technical analyst patterns and key concepts, but how to apply these concepts to real-life trading. Murphy's works are often used as study material for the CMT exams. The book was originally published in 1986 and was an expanded version of his original book, "Technical Analysis of the Futures Markets."

"Technical Analysis of Stock Trends" by Robert Edwards, John Magee, and W.H.C. Bassetti was originally published in 1948 and is credited by many for putting Technical Analysis on the map for investors and traders. It was one of the first books that developed a methodology for trading stocks and interpreting predictable behavior of the stock market and its human participants, focusing on price action, volume, and time. The book focuses on how to trade stocks independent of which direction the market is trading, and highlights the important of identifying and participating in long term trends in the market.

This book is often cited as necessary reading material for those seeking to earn the Chartered Market Technician (CMT) designation.

"Technical Analysis Explained" by Martin J. Pring was originally published in 1980 and offers a step-by-step guide to incorporating technical analysis into your trading routine. The book attempts to coach traders to leave their emotions out of their investing decisions and is often considered "the bible of technical analysis." The book helps investors understand "the why" driving stock moves, often explaining the psychology connected to popular charting patterns like a double top or head-and-shoulders pattern.

"How to Make Money in Stocks" by William O'Neil was originally published in 1988 and has sold more than 2 million copies in its lifetime. The book was written by the founder of Investor's Business Daily. The book offers guidance to investors who are new to stocks and highlights the importance of riding the trends of the best positioned industries, trading stocks off of news headlines, and improving stock selection and timing through the use of charts and technical indicators.