You have just signed up for the next Chartered Market Technician (CMT) test. You should spend your time studying hard for it. You should not waste time piecing bits of information together to find your study materials.
Let us help all aspiring Chartered Market Technicians with this one-stop resource page. Read on even if you are not enrolled in the CMT program, as this book list is also useful for any student of technical analysis.
Overview of CMT Reading Materials
Update 21 August 2017: The CMT Association has published books that cater to CMT examination preparation (as listed above).
Hence, the reading list below does not apply directly to the CMT examinations now.
Nonetheless, they are still relevant for any serious student of technical analysis.
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CMT Level 1
| Title | Note |
|---|---|
| CMT Program Level 1 Reading Assignments (including MTA Code of Ethics) | Print it out and use it as a guide for your CMT preparation. |
Technical Analysis of Stock Trends, Tenth Edition | For CMT Level 1, focus on the chart patterns. |
Technical Analysis: The Complete Resource for Financial Market Technicians (2nd Edition) | This is a comprehensive guide to technical trading. Although the scope might be intimidating, remember that CMT Level 1 focuses on defining technical analysis concepts. Application and integration are for more advanced levels. |
Technical Analysis Explained: The Successful Investor’s Guide to Spotting Investment Trends and Turning Points | Pay attention to volume analysis, sentiment indicators, and cycle analysis. |
The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method | This book is as good as it claims. However, the topics covered in CMT Level 1 are basic and you can learn them with free resources online. |
CMT Level 2
| Title | Note |
|---|---|
| CMT Program Level 2 Reading Assignments (including MTA Code of Ethics) | Print it out and use it as a guide for your CMT preparation. |
| Technical Analysis of Stock Trends, Tenth Edition | The scope for CMT Level 2 is narrower and covers miscellaneous topics. |
Elliott Wave Principle: Key To Market Behavior | This is the definitive guide to Elliot Wave Principle. |
Trading Systems and Methods, + Website (Wiley Trading) | A more quantitative view on technical analysis. |
| Technical Analysis: The Complete Resource for Financial Market Technicians (2nd Edition) | The scope of this book for CMT Level 2 is smaller because the focus is on the application. |
Japanese Candlestick Charting Techniques, Second Edition | Steve Nison is a candlestick expert and his book is a worthwhile investment. However, CMT Level 2 covers only the basic candlesticks topics, which you can learn them from free online resources. |
Investment Psychology Explained: Classic Strategies to Beat the Markets | Psychology is an important but often neglected topic in technical analysis. |
| Technical Analysis Explained: The Successful Investor’s Guide to Spotting Investment Trends and Turning Points | CMT Level 2 covers specific topics like sector rotation, cycles, and automated trading systems. |
| Excerpt from Technically Speaking | Free resource provided by Traders Press Inc. |
Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals | A very technical book. But not to worry, there are only 4 chapters to cover. |
| The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method | CMT Level 2 delves into the advanced Point & Figure techniques in this definitive guide. |
CMT Level 3
Do I need to buy every single book for the CMT program?
The short answer is no. You do not need to buy every single book. But you do need to read them.
You can try to borrow the books from your friends and your library, or rent them. You can also look out for past candidates in trading forums, and borrow or buy the books from them. A different edition is not fatal, but make sure that you are reading the right chapters as the chapter numbers might have changed.
However, I recommend that you buy at least the 5 books needed for more than one level of CMT assessment. This bundle of books (listed below) is not only a time-saver but also a set of excellent reference material.
I hope you find this article useful. And I wish you all the best for your CMT examinations.
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Sir I am a 40 year old person , trading in equity market since last 15 years.
I have traded more than 500 crores in f&O
Without bieng technical knowledge.
Sir many times my intutions are such that even a technical analyst can’t provide.
I get this through rigorous watch out of markets and meditation (spiritual adhyatamm.)
Sir please guide me whether I should do the course at this age.
Waiting for your reply THANKYOU
Thanks for the comment. CMT offers a structured way to learn about technical analysis or to certify your knowledge for professional purposes, if that’s what you’re after. If you are fine with learning technical analysis on your own, you do not need to join this program.
But you didn’t mention which chapters to read. Kindly update this article with chapter numbers. It will be very helpful for us.
The first item of each table links to a PDF that shows the chapters covered in each book. But as mentioned in the update above, there are official CMT textbooks now that might be more appropriate for CMT prep.