Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications Hardcover – Jan 1 1999
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About the Author
John J. Murphy is President of MURPHYMORRIS, Inc., a producer of interactive educational products for technical analysis. A former technical analyst for CNBC and director of Merrill Lynch's Technical Analysis Futures Division, he is the author of The Visual Investor and Intermarket Technical Analysis.
Inside This Book(Learn More)
Before beginning a study of the actual techniques and tools used in technical analysis, it is necessary first to define what technical analysis is, to discuss the philosophical premises on which it is based, to draw some clear distinctions between technical and fundamental analysis and, finally, to address a couple of criticisms frequently raised against the technical approach. Read the first page
Front Cover | Copyright | Table of Contents | Excerpt | Index | Back Cover
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Top Customer Reviews
In the past 2 decades, many on Wall Street have come to believe that technical analysis of stock charts is one of those tools. Having worked in the financial services markets since 1987, I do believe that technical analysis can be a helpful tool. And if you are looking for a definitive source of TA, then look no further.
Technical Analysis of the Financial Markets by John Murphy covers all the basic aspects of TA: philosophy, chart construction, fundamental vs. technical analysis, trends, major technical pattern recognition, moving averages, oscillators, times cycles, computer trading systems and much more. He also covers different methods of charting, including bar, point and figure and candlestick (be aware that most of the analysis techniques he presents apply to bar charting, not PnF or candlestick).
What I like most about the book is that it written clearly, simply and logically. It uses many graphical examples that SHOWS the reader what to look for. It does not rage on about the merits of TA (which many investors feel is complete hooey) but how to apply basic (and sophisticated) TA techniques. I use TA frequently in my business and find that it helps me manage my client's portfolios more effectively, especially when it comes to SELLING a position, whether to lock-in gains or limit losses.
If you are a TA convert, or if you have an interest in learning more about it, this book is a useful guide and should be purchased. Today, it remains one of the few investment reference books that I keep in my office.
As someone who basically introduced intermarket analysis to the broad technical analysis community, John has watched markets move one another since the late 1970s and documented the whys and whatfores and then carefully recorded his thoughts for the benefit of the rest of us.
Technical Analysis of the Financial Markets is without a doubt one of the best introductions and general discussions of technical analysis on the market today. It has been recognized by the Market Technicians Association and International Federation of Technical Analysts as such and is required reading for both the Chartered Market Technicians designation from the MTA and the Diploma of International Technical Analysis by IFTA. In fact, their required reading lists are great places to get ideas on which books the professionals are reading!
But it is a book that is not only for those new to trading and technical analysis. It is for everyone and anyone dedicated to improving their investment or trading returns by getting the right information direct from the source. It is a book I have read multiple times and will read again this year.Read more ›
There is some criticism that the question of 'does technical analysis work' is not answered. This is true, and i'm thankful for it; rehashing age old arguments isn't fit for a book of this nature. Most of the evidence suggests technically based methods are about the same as market returns -- but with significantly less volatility. That is, on a risk adjusted basis, they outperform.
This is a recommended book to start your learning process. Not all of it is good, and it should not be taken on face value, but a basic understanding of TA can be very useful. I'd read this after you read a Tharp or Elder, as Murphy does not deal too extensively with risk management, except in very general ways near the end of the book.
If you are serious about TA, then you'll need either of these two TA bibles in order to become a MTA professionally certified TA "chartist". Before diving in, please first ponder if the professional securities trading associations are correct, then there are only about 5000 full-time day traders in the USA. Out of the minions of 8 million "day traders", are the statistical odds against your own full-time success?
If you can identify the difference between a hedge fund from a mutual fund, then you might be savvy enough to cut the mustard.
If not, then I would start with "The Fundamentals of Investment" which makes the Murphy book look like a real bargain. At least that recommended textbook will focus your thoughts on what is truly right for you.
Can you grasp the essence of statistics? For example, does the inverse relationship between interest rates and price earnings ratios excite your bottom line of probabilities?
If not, then you should probably take a college-level statistics class (ie. sociological statistics, political statistics, or business statistics). This basic foundation should bring the Murphy book into a much better focus of your profitable ambition.
You will be able to more fully appreciate any group psychology, social dynamics of inferential statistical analysis and that TA toolbox in Murphy's book.
If all of this review is too dry for your tastes, then you can always look for a nice mutual fund.Read more ›
Most recent customer reviews
After having read a number of books dedicated to ''Techincal Analysis (TA)'', this is the one I would strongly recommend as a first read. Read morePublished 11 months ago by Pierre LeBlanc
They weren't wrong. If you own only one book on TA, it should be this one. Critical material for any investor's bookshelf.Published 21 months ago by R Freeman
This is a good book for stock market beginners. It explains the basics of stock market investing, how to identify trends, support lines etc. Read morePublished on Aug. 7 2013 by FABs
Yes, I agree with many of the comments below; this book, and the workbook that is usually attached as a set, serve as one of the best introductions to the study of technical... Read morePublished on April 24 2009 by James DiCenzo
This book covers everything. For the complete beginner, it's all explaind. For the veteran, it's a great refresher. Read morePublished on June 7 2006 by M. Eyresen
Murphy's tome on technical analysis is rqeuired reading for any practioner in the financial markets. Read morePublished on May 9 2004
thorough and complete, the reader is left believing that upon completion they have seen and learned all there is to be known about charting. Read morePublished on May 2 2004 by Denise
Very good compilation of decriptions on the subject. Will not give you any original idea, and unlikely any tradable idea.Published on Feb. 9 2004
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