Trading: Technical Analysis Masterclass: Master the financial markets

by Rolf Schlotmann, Moritz Czubatinski

Trading stocks, currencies, futures, and other financial contracts is not actually complicated and anybody can learn it in a relatively short time. This has been my daily experience for the past decade and even traders who have tried everything for years without success can make their first profits if the art of trading is explained to them in the right way. However, the keyword “in the right way” is important here. This book focuses on technical analysis, explanation and interpretation of price movements and chart patterns as well as on learning effective, ready-to-use trading strategies. However, it is important to go beyond the usual technical analysis, and to analyze the behavior of traders based on psychological factors and phenomena of mass psychology as well. The price movements on the international financial markets arise because millions of people interact with each other every day. Buying and selling decisions are influenced by emotions and human behavioral patterns. Whether we are looking at a speculator from China 200 years ago, a Wall Street pit trader from New York 80 years ago or a modern-day "Joe Bloggs trader”, trading from his/her smartphone – the human components, i.e. emotions and instincts, hardly differ. Greed, fear, uncertainty and the willingness to take risks have determined human actions for millennia and, of course, also how people have maneuvered their money around the world's markets for centuries. Those who learn to read the buyer and seller interaction from the charts will be able to read and handle any price movement. This is true because all price charts follow universal and timeless rules that can be successfully interpreted with the help of effective technical analysis. Over the years, more than one million visitors have already searched for information about trading on our website www.tradeciety.com. Every day, traders ask us how they can understand technical analysis and trading in a better manner. This book is a result of the motivation to answer these questions collectively. It is the book I would have wished for at the beginning of my trading career over 15 years ago. The first section of this book provides comprehensive knowledge of the fundamentals and individual components of technical analysis and price analysis. The second section focuses on the most important trading patterns as well as the correct interpretation of chart formations. We will explore potential entry signal points and trading strategies so that traders can now already make sense of their own charts with confidence. The third and final section focuses on developing a customized trading strategy. In addition to an insight into important psychological trading concepts, traders will get numerous practical tips to ensure that they handle their trading professionally at the end of this book. The goal of this book is it to enable the reader to look behind the price movements and understand why prices rise and fall, how buyers and sellers interact and thus to make effective trading decisions. The comprehensive and step-by-step knowledge of technical analysis ultimately makes it possible to interpret any chart situation and, thus, hopefully, become an independent trader.

Genres: Finance, Nonfiction, Business, Economics, Personal Finance, Technical, Education

183 pages, Kindle Edition

Published February 17, 2019

Reviews

[Tony WANG · Rating 3 out of 5]

This book should be titled as Technical Chart Patterns for Dummies. It contains really basic charting techniques and indicators with simple explanations. This book also teaches you how to analyse common chart patterns like Double Top, Head and Shoulders, Ascending Triangle, Wedges etc. and how to read and draw trendiness, support and resistance lines.

MACD and RSI divergence can be fairly accurate to identify an exhausted rally. Gradual higher highs are actually losing strength and a trend reverse might be around the corner.

Counter trend trading is one of the most risky tactic as it is not easy to predict an end of a rally. It takes experience and practice to interpret price action or with momentum signals in order to not hit your SLs.

My advice: keep a healthy degree of skepticism using momentum and volatility indicators. Most of the time high can get higher and low can get lower aka one will never know when exactly a stock is overbought or oversold. Learn to use it with care. The application of indicators are really more art than a set of rules to follow.

[Lauren · Rating 3 out of 5]

Pretty basic book. Title is misleading. Certainly would not call it a "Masterclass" by any means-
More like an "Intro to Technical Analysis". I've been trading for a while now and was hoping there would be some real "mastery" in here as it claims twice in the title.
Skims over some of the major components of price action, charts, and indicators for the beginner trader. Some advice for a beginner trader, this book should be supplemental to a formal course or structured education or other trading book. Finishing this book will not give you nearly a quarter of the tools you need to start trading live- which I don't think the book tries to be. To make an analogy, it tells you what a fork, knife, and spoon are used for but doesn't touch too much on the type of meal you're working with.
If you just need to brush up on what certain indicators are used for and what candlesticks demonstrate, then this is your book. I like to say you can learn everything about technical analysis for free online, but the problem with that is that you're not quite sure what you don't know and what to search for and it's often scattered across different teachers or sites with conflicting info. However, with that being said, I didn't find anything in this book that couldn't easily be found all in one place online.
For a beginner trader, read The New Trading for a Living by Alexander Elder instead. It goes more in-depth to technical analysis concepts and also includes a trading psychology element, which is truly the meat of trading.
TAM is not a bad book, just felt kind of duped as the content is not representative of what the title gives off. It doesn't contain any value that makes it better or different from free info online or other trading books. Ironically (in trader-speak) "It didn't have any edge that separates it from the others". But give it a read if you want to get your feet wet with basic technical analysis!

[Gijs Limonard · Rating 5 out of 5]

4,5 stars: very practical nuts-and-bolts guide, although it’s not really my thing, was interested in technical analysis and this nifty book is packed with useful and clear explanations and background info; recommended.

[Aziz Adib · Rating 4 out of 5]

Short, kinda comprehensive and direct to the point.

[KHELLIAN · Rating 5 out of 5]

This is a great little book that offers a great deal of info in a very readable and understandable form. Its beauty is that it doesn't overcomplicate the art of trading in the way that so many other books of the genre do. The first aspect that I liked was the section that dealt with candlesticks and patterns - you're not inundated with dozens but a manageable number with complete explanations as to why they are important in terms of the supply and demand that creates them - armed with that knowledge so much more falls into place. Also, in the section on indicator oscillators - one aspect that I totally agree with is expounded in the discussion of overbought and oversold. Many technical traders suggest that these are times to be getting out of their positions but the author correctly states that this is a sign of trend strength - it is the exiting of the oscillator from these areas that are signs of the trend starting to fail and time to get out. This would keep you in a trade for much longer.

[Lor · Rating 4 out of 5]

Trading: Technical Analysis Masterclass - Rofl Schlotmann & Moritz Czubatinski
Mar - Mar, 2026

Candlesticks
- If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified.
- When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end.
- Candlestick bodies that remain constant confirm a stable trend.
- Sudden shift from long rising candlesticks to long failing candlesticks indicates change in trend and strong market forces.
- Long shadows can be a sign of uncertainty. Buyers and sellers are competing.
- Short shadows indicate a stable market.
- We can often see that the length of the candlestick shadows increases after long trend phases. Increasing fluctuation indicates that the battle between buyers and sellers is intensifying and the strength ratio is no longer as one-sided as it was during the trend.
- During a strong trend, the candlestick bodies are often significantly longer than the shadows.
- When the trend slows down, the ratio changes and the shadows become longer in comparison to the candlestick bodies.
- Sideways phases and turning points are usually characterized by candlesticks that have a long shadow and only short bodies.
- If only one dominant shadow which sticks out on one side and the candlestick body is on the opposite side, the this scenario is referred to as rejection, a hammer or a pinbar.
- Another scenario shows a candlestick with two equally long shadows on both sides and a relatively small body shows an indecision candlestick.
- Signal candlestick patterns
- Pinbar - A pinbar after a long uptrend often signifies an imminent sell-off
- Hanging man - its main feature is the long shadow against the prevailing trend direction, which shows the newly developed interest of the opposition.
- Marubozu - also known as an impulse, momentum or trend continuation.
- Doji - indicates a temporary pause and indecision by the market players. If a Doji occurs during a trend phase, it usually has no significance and everything depends on the candlestick that follows.
- Multiple candlesticks patterns
- Engulfing candlestick - the following engulfing candlestick then signals that the strength ratio suddenly reverses and more buyers enter the market so rapidly that they explosively reverse the trend direction within a single candlestick. In this context, the engulfing formation is a reversal signal.
- Three Black Crows (3BC) / Three White Soldiers (3WS) - 3BC formation often resemble the Marubozu candlesticks and signal a strong downward impulse.
- Three Inside Up (3IU) - 2nd candlestick is a small candlestick which is completely engulfed by the previous one, hence the term 'inside'. This means that the price movement is slowing down. 3rd candlestick is a strong impulse candlestick, it ultimately confirms that the sellers have been completely pushed out of the market.
- If the candlesticks become smaller, they indicate that a trend is slowing down. Long shadows also signal a rejection and the strong impulse candlestick in the opposite direction of long shadows confirms the final change of direction.
- Evening Star / Abandoned Baby - the Doji initially indicates only a temporary pause in the upward trend and has no significance on its own. However, if the Doji is followed by a strong Marubozu candlestick in the opposite trend direct, this often signals a complete trend reversal.
-

- Phases - trends, corrections, consolidations, breakouts, trend reversal.
- Support and resistance order absorption
- Whenever the price reaches resistance during an upward trend, more sellers will enter the market and enter their sell trades. If the price reaches the same resistance level again, fewer sellers will wait there. This phenomenon is call order absorption. The resistance is gradually weakened until the buyers no longer encounter resistance and the price can break out upward and continue the upward trend.
- Supply and demand zones
1. Moderate volatility - good supply and demand zones are usually relatively narrow and the price does not fluctuate strongly during the short consolidation phase. This indicates a proper balance.
2. Timely breakout - good zones should no wait too long for the breakout and the consolidation phases are often short. The underlying idea is that the buying and selling interests suddenly tilt, but this imbalance ought not to be too long in coming.
3. Strong breakout - the stronger the breakout away from the initial zone, the higher the probability of the price showing such a reaction in case of the next entry.
4. Order absorption - price levels can be weakened with each contact point. Therefore, only the first, or at most the second, re-entry into a supply and demand zone should be traded.
5. Spring formation - cannot always be found in a supply and demand zone, but it can improve the quality of such a zone. A spring formation shows a failed breakout attempt, which is immediately reversed.
- How to avoid traps
1. Avoid late entries.
2. Wait for confirmed breakouts.
- Indicators
Momentum Trend Volatility Chart studies
Stochastic ADX Bollinger Bands Horizontal lines
RSI Moving averages Standard deviation Fibonacci
CCI ATR Supply / Demand
Williams % MACD Keltner Channel Trend lines
MACD Parabolic SAR Envelopes
Bollinger Bands
Ichimoku Cloud
- The most important factor for selecting the indicators is to use only one indicator per group to avoid repeat signals
- Best settings for MA
- 9, 10 periods
- 20/21 periods
- 50 periods
- 100 and 200 periods
- Overbought and Oversold
- Knowing this, over bought does not mean that the trend is likely to reverse, but that the price is in a strong trend.
- Bollinger Bands
- "In my trading I prefer to use 2.5 standard deviation to filter out noise signals.
- During trend phases, the price usually progresses along the outer bands.
- If the price pulls away from the outer bands and moves to the middle, this can often represent a weakening trend.
- If the price then breaks the middle band, it usually signals the end of a trend.
- How to find reversals
- For the statistical point of view, 2.5 std dev means 99% of all price movements take place within the BB
- When a price movement that breaks the outer bands, it indicates a rare condition. However, we must distinguish between two different situations in such a case:
1. If the price shoots through the outer band and also closes outside the outer band. This indicates an extremely strong trend and a continuation is likely.
2. If the price shoots through the outer band and then immediately reverses, it indicates rejection.
- Just like the MA, the MACD should not be used during sideways phases.

[Vishnu · Rating 3 out of 5]

Good thing about this book is that it doesn't beat around the bush and directly gets into the core content about Technical Analysis of the market. Which is really good if you're not interested in anything else. However, the kind of details about technical analysis that they've shared in this book is pretty average. There are easier ways to understand those topics than go through this book. Plus there's nothing new to offer apart from the same old stuff about how to read candlecharts, how to read candle formations etc. The best chapter was sadly the last one where there was some new perspective around some of the most commonly used indicators. Until then, it's pretty average.

[Matheus Sevaroli · Rating 3 out of 5]

These highlights reflect the passages that stood out to me personally, capturing moments that resonated, challenged, or intrigued me:

"Trend Line Angle: the slope of the trend waves indicates whether a trend is gaining or losing strength."

"The candle body aspect: If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified. When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end."

"The candle shadow aspect: The length of shadows helps in determining the volatility. Long shadows can be a sign of uncertainty, while short shadows indicate a stable market. We can often see that the length of the candlestick shadows increases after long trend phases. Increasing fluctuation indicates that the battle between buyers and sellers is intensifying, and the strength ratio is no longer as one-sided as it was during the trend. So, healthy trends, which move quickly in one direction, usually show candlesticks with only small shadows since one side of the market players dominates the proceedings."

[Fidel Morla · Rating 5 out of 5]

I honestly didn’t expect a technical analysis book to make such an immediate difference for me, but TA Masterclass did. The way it explains technical analysis is super clear and beginner-friendly, no fluff, no complicated jargon, just the fundamentals laid out in a way that actually makes sense.

What I loved most is that I could apply the principles right away. I started using what I was learning while I was still reading, and my results improved fast. My ROI increased noticeably, and I felt more confident because I finally had a structured way to make decisions instead of guessing (like I feel I was doing after thinking back).

This book is simple, but it’s powerful. If you’re a beginner and you want something that’s easy to understand and immediately actionable, I genuinely recommend it. Very, very good.

[MUHAMMAD AHMAD · Rating 1 out of 5]

Avoid this book if you’re serious about trading.

✖️ Too basic: Explains candlesticks (hammer, doji), price patterns (head & shoulders), and indicators – stuff you can learn better in free YouTube videos.
✖️ No real-market value: Doesn’t teach traps, psychology, or strategies for live trading. Real markets need practice, not theory.
✖️ Waste of time/money: Save your cash – skip this and use free resources instead.

What to do instead:
✅ Learn Volume Spread Analysis (VSA) and market structure.
✅ Backtest strategies + practice on a demo account.
✅ For psychology, try a small funded account (e.g., $5k for $30).
✅ Find a mentor – real experience beats reading basics.
Final verdict: Only for absolute beginners, and even then, YouTube is better.

[Andrew Dato · Rating 3 out of 5]

I feel this title is misleading. This gives you a great beginners guide but really doesn't go any further then that. A lot of what is explained is basic tools you should know. The issue is, he doesn't even go that comprehensive as you would think. The best example is that he goes over candlestick charts but proceeds to only list a handful of them before telling you to go to his website for more.

Again, if you are starting out, this is perfect to check out to get your foot in the door with technical analysis. In my opinion, there are shorter and more specific books out there then this. But give it a shot if you are just starting out.

[Yasmine Saidi · Rating 5 out of 5]

If you have no idea about trading and technical analysis and want to get started then this is the book for you. I have been trying to learn for years but the surplus of scattered information on the internet makes it seem like a difficult thing to master.

After countless hours of YouTube videos that claim to be beginner friendly, I was ready to give up altogether. That’s when I got this book and it a matter of few days, I feel more confident trying to understand a chart. However, I do acknowledge that this is just an introduction. If you have an intermediate level in technical analysis and charting then you can skip this book because the concept is basic and meant to give a general idea.

[Swagat Gaikwad · Rating 5 out of 5]

Fantastic book for people learning technical analysis

This is a fantastic book that not only introduces new traders to the world of technical trading, but also goes in depth into candlestick patterns, identification of trends, traps and indicators. I'm a newbie in forex trading and this book has helpe me immensely in my rather steep learning curve. Highly recommended to not just newbies but also experienced traders as it is a good reminder of the basics, fundamentals behind buying/selling, dynamics behind trading and of course technical interpretation of charts.

[James L · Rating 4 out of 5]

A book about technical analysis for beginners. It is easy to read with simple and clear graphs. The only problem I had about the graphs is that the color was too light on my Kindle device.

Technical analysis is not rocket science. It is a supplement for making a better trading decision. Simply finishing the book will not make you become a master in that area. Experience, reflection, and continuous learning are the keys to success. I like this book because it did not discuss too much details, but give me a clear framework about technical analysis.

[Bruce Callaway]

Clear, Concise and Enlightening

The author explains Technical Analysis in a way that is easy to understand. This is the best, clearest explanation of Technical Analysis I've come across.

He explains things that many Traders misunderstand about certain aspects and indicators for Technical Analysis.

I have a much better understanding of Technical Analysis after reading this book.

Reading this book and applying what's taught in this book will surely lead to more profits while trading.

[Aditya PAradkar · Rating 3 out of 5]

Good for beginners

This is a great book for someone who has no education or education in trading. Not much for for serious traders. A couple of good insights. Would have appreciated it much more had it covered other practical topics like types of orders, trading psychology, what are setups, how to identify your niche in trading etc. A good introduction to trading book none the less. If someone around you is interested in trading this seems like a good gift.

[Chris Dziewa · Rating 3 out of 5]

This is a fairly quick read. It is nice that there isn't much fluff. The book echoes a lot of the other trading authors and speakers I have learned from in the last. While I don't personally use indicators very often, I liked reading about a different approach to RSI than the one often shared online. I would have liked to hear about the effectiveness of indicators across different time frames. The information contained is worth considering for newer traders.

[Rabin Rai · Rating 5 out of 5]

Great book for beginner.
Learnt about candlestick, chart patterns and indicators.

Learnt about reversal and trend-continuation candle sticks.

Opened my eyes on the significance of ascending triangle, wedge and flags as well as trend length and trend angle of chart patterns.

Corrected my misunderstanding of oversold and overbought signals of RSI. They do not signal to buy or sell but shows the strength of the uptrend and downtrend.

[Ricardo S Ortiz · Rating 5 out of 5]

This Works. Seriously. Just what I needed.

This book hands you the tools to a trade. A Skilled Trade. Practice with Papermoney. Test your theories. Use your mind to mine the amounts you need. This should replace Algebra in highschools, its way more u$eful towards a life that doesnt require miles & hours of pain just to earn the right to live your life your way. STUDY SO YOUR MIND RESTS YOUR FEET. I will make beats and trades around the clock. Become A Master OF both..GW.

[Jonathan H. MONTES · Rating 5 out of 5]

Incredible as a beginner in understanding the usage of tools to better grasp the idea of buying stocks and knowing when to sell them for a buck

I made 10 dollars as a newbie and was mind blown. Obviously with time and rereading this book and many others I will be able to bring in a few extra buck.

I would recommend this to people who are ready to lose the money they place for stocks. It can happen but with this book I think less mistakes could occur.

I strongly recommend this book.

[Amar Haiqal Bin Hussin · Rating 5 out of 5]

Its not a masterclass really. It's more like "Technical Analysis for Beginners" is a more suitable name.

The content itself is easy to understand for beginners like me and also have illustration to describe the technique better

However if I'm a professional trader I might give lower stars on misleading title and expect more advanced techniques. The content focused on reading individual candle followed by fundamental chart patterns e.g SNR, Breakout, Consolidation, HAS, Cup and handle etc

[Arsalan Shahid · Rating 4 out of 5]

Excellent book for beginner traders looking to learn basic technical analysis. This book is not too information heavy and provides an adequate amount of graphs and real world examples. My only critique is that since it is a masterclass on technical analysis, shouldn't it include more advanced levels of technical analysis? The information provided in this book fits perfect for beginners but not for experienced traders.

[Alan Fuller · Rating 3 out of 5]

It is crucial to analyze traders' behavior using psychological variables and mass psychology phenomena in addition to the standard technical analysis. Focusing on particular patterns and price structures, the technical trader examines share prices. Because people consistently exhibit the same behavioral patterns and frequently base their trading decisions on shared emotions, technical analysis is incredibly effective.

[Rajesh Katariya · Rating 3 out of 5]

Lucid and practical.

Lucid and practical approach. Touched upon every aspect of the technical analysis. However it would have been great if topics of bet size and psychology also covered, cause entry or analysis of market movement is only 10% others comprise money management, trade management and psychology.
Cheers

[Sebastian Godoy · Rating 5 out of 5]

I'm trying to learn how to trade, I have read a few books about the subject. but this one is "by far" the best one that I have read that explains really good the basics.
I thought I had understood some concepts before but after reading this book, now I have it much more clear.
Very recommended if you are in the learning phase.

[Aaron · Rating 3 out of 5]

Not for beginners. Need to re-read again if you're a beginner (as myself). You can basically skip to reading the last 2 chapters (7 & 8) of the book as the previous chapters might be too technical if you are a beginner and those chapters contains the most important information.

Recommend starting with some other beginners books first!

[Leon Adeyemi · Rating 5 out of 5]

Very good in depth book

This book is very good and clearly communicated, trading is not easy, and all these people who say that it is age lying. Trading is very difficult and takes a long time to master but having books like this can help along the way, i can go back to reference points aswell which is useful

[Francesco Campanini · Rating 3 out of 5]

Like most of other readers wrote, the book is not a Masterclass. It provides with basic graphical analysis. Probably providing too many techniques and not going into practical examples about when using what. In particular, for each technique, the author does a post-mortem analysis, which is not very useful!

[Tech Nossomy · Rating 2 out of 5]

An introductory overview of technical analysis for stock and futures trading. There are no calculations in this book, only brief texts on what technical indicators do, together with charts, mostly in color.
Unfortunately the standard dogmas are repeated, and none of the chapters stand out as being novel. In fact the information presented can be garnered from the wikipedia pages on technical trading. The text overpromises routinely, for example the section on advanced wave analysis borders on the occult and is so brief it may as well have been left out.

There are many other large omissions in this book:
* no word on why technical trading should actually be pursued, and instead it is rationalised as an approach with an inherent "profit potential"
* as stated there are no calculations or results, so the reader is unable to prove how well the strategy under discussion will work
* there are no discussions on data collection or data display, so that the reader cannot learn from the book how well different timeframes, different strategies, different resolutions etc will look like on screen
* there is no treatment of how to start technical trading: broker selection, accounting, tax considerations, or any other practicalities, so the book does not even serve as a recommendation.

After a few chapters the book starts to read like an extended white paper.

[Dan · Rating 5 out of 5]

Really helpful for a trading noob like myself.

This book doesn't bog you down with the small details, it gives you a basic understanding on how to read candles, and a few indicators. I definitely felt like I learned something. So if you're new to trading, you can't go wrong with reading this little book.