It happens almost every day during my Pre-Market Prep webinar…
Somebody inevitably asks what I’m looking at on a chart. Or they want to know where to learn more about support and resistance. Or price action.
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Table of Contents
The Big Picture
Between the tools, webinars, and courses we have available, you could never open a trading book and do just fine.
Now, don’t take that the wrong way. We have a booklist available for Daily Income Trader members. Most of the best traders I know put in the time to learn from every source they have available.
But when someone asks me what I’m looking at on a chart, I default to one book.
We still answer the question. And we also have daily webinars for members where they can ask those kinds of questions. But when it comes up almost every day, there’s one book I recommend for technical analysis.
It’s called “Technical Analysis Using Multiple Timeframes” by Brian Shannon.
I’m not exaggerating saying it was a game changer for me. I remember watching Sykes videos and thinking “this is nonsense.”
Then I read that book and it was clear. It all made sense. Sykes was right, by the way. I just didn’t know why.
I’ve recommended books before, including the Brian Shannon book.
Again, we have an entire list. But if I had to choose one book that I wish every new trader would read as soon as they join StocksToTrade Advisory…
That’s the one.
It just makes everything else make more sense.
One reason is that it explains how to look at both long- and short-term charts and understand the psychology behind price action.
I won’t go into details here, because you should just read it. But knowing the interaction between long-term buyers and sellers, and short-term buyers and sellers, is like putting a puzzle together.
You finally see the whole picture.
For example, if you look at a chart where there’s support or resistance a few months back, you understand what’s at stake psychologically for the traders involved. And that provides clarity about what is happening on the intraday chart.
Now, that doesn’t mean you’re going to win on every trade. Nobody wins 100% of the time.
But once you understand what all the different market participants are thinking and feeling, you can use that information to guide your trade plans.
My Take
If you treat trading like a profession, then you need “Technical Analysis Using Multiple Timeframes” on your bookshelf. Read from it every day until it all sinks in.
Now, there are other technical analysis books out there. And there are trading psychology books, too. We recommend several books that any serious trader should read. They’re all good. But there are very few (if any) other trading books that constantly remind the reader about the exact market psychology expressed in the price action.
Watchlist
You thought I forgot about Space Exploration Technologies Corp. (NASDAQ: SPCX)?
SPCX opened trading at $150 on Friday, $15 per share above the offering. Then it spiked up to $168.56 before a pullback.
SPCX, 6/12/26 successful IPO day
Now, I’ve added a couple of lines there since we’re talking about technical analysis. Notice how the morning high became support once SPCX broke through resistance?
Obviously, we don’t have any long-term data for SPCX yet, but remember this chart. Come back to it in the coming weeks and see if the morning high and HOD (at the time of writing) don’t become important levels.
On My Radar
- My boy Elon did it: The world’s first trillionaire
- Lesson 15 | Risk Management: The #1 Skill That Keeps Traders Alive dropped on Friday
- If you haven’t watched Lessons 1-14 here’s the playlist
- And if you missed it last night, you can watch my Sunday Market Brief here