Book Review: Technical Analysis in the FX Markets

Earlier this year I was asked by the editors at The Technical Analyst magazine if I’d be willing to contribute a “chapter” to a new book they were developing on the subject of technical analysis in the forex market. My chapter comprised of my answers to a series of questions they provided to me. It was joined up with contributions from a dozen others into the recently released book Technical Analysis of the FX Markets. (You may recall that I also had a chapter contribution to the SFO Personal Investor Series: Psychology of Trading book a couple years ago.)

I actually received a copy of the new book the other day. It’s a very nice hard copy edition. On the back cover it says:

Technical Analysis in the FX Markets comprises interviews with 13 market analysts from around the world. Each chapter provides essential and in-depth descriptions of techniques that are most effective in trading the global FX markets.

The group of contributors to this book is a pretty impressive lot. To a man (and woman in two cases) they are all professionally employed at the institutional level as analysts, strategists, or heads of research. I actually met one of them when I did my presentation in London back in May, and one of the others used to work the same group I’m in before moving on to a bank.

The big focus of the interview questions was to get at the specific ways each of us looks at and analyzes the forex market, obviously mainly from a technical perspective. Some of the questions asked are:

  • How does your application of technical analysis (TA) vary between time frames?
  • To what extent are the FX markets driven by sentiment?
  • Are there any indicators that work especially well in FX?
  • Are there any market conditions where TA works better?
  • What determines the “key levels” in the FX markets?
  • How can intermarket analysis and cross asset correlations be used effectively when analyzing currencies?

Naturally, the answers vary considerably from contributor to contributor.

My one little niggle about the book is how the charts are placed. They are not in-line with the text, so to speak. They are, instead, placed at the end of each section. For example, if you are reading my chapter and I mention something from a chart, you have to flip to the end of the chapter to see the figure, and the figure references are not always present. Bit of a pain.

Overall, this book represents a good insight into how professional market analysts, strategists, and trader go about analyzing and playing the forex market.

Make sure to check out all my trading book reviews.

If you like this post or find it informative, I encourage you to sign-up for the newsletter.

Also subscribe to the blog feed and/or follow via Facebook or Twitter.

About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.

Leave a comment

By submitting a comment here you grant this site a perpetual license to reproduce your words and name/web site in attribution.