Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

It is entirely possible to spend more time reading trading books than doing any actual trading. This is one of the few books that will remain on my bookshelf and I highly recommend it FOR WHAT IT IS INTENDED - an excellent reference on technical analysis (TA). What I was looking for was something to provide clear, concise descriptions on various technical indicators across all types - trend analysis, price patterns, candles, oscillators, etc. And Murphy not only does this well, but his work provides enough information that I do not see the need for another book on TA on my bookshelf, even though I know that other very good books are available (e.g. Pring). But this one is enough for me. It is well organized and indexed so that I can rapidly look up something while I am setting up trades and get the basic info that I need. One surprise was how well written the book was and how much I enjoyed reading it. I expected a dry reference book but instead found an excellent and engaging read, perhaps with the exception of the chapter on point and figure which was not up to the rest of the book. (If you are completely new to TA, you might find it less entertaining, but in comparison to the dry tome that I expected when the monster-sized book arrived, Murphy is remarkable in his ability to convert most TA topics and examples into 'normal' English.) He also is not a proponent or zealot about any one indicator type, which I appreciate. He does a good job of describing each within the context of its value without trying to convert anyone to any specific indicator. As I do not believe in magic bullets in trading, I appreciate his straightforward approach. Let me also note what this book is NOT so that you do not buy it for the wrong reasons: a) As you should gather from the above, this is not a trading system. Murphy will not tell you which indicators to use most or in which combinations to produce the best results. He will provide insight into many indicators and classes of indicators but he is NOT trying to convince you to use any specific indicator in any specific way. So he doesn't try to convince you of WHAT to use, just helps you understand WHEN, WHY and HOW each indicator type is used by various traders. b) Also, this is NOT intended to be the complete, in depth statement on any of the topics covered. For example, his section on Candlestick formations is simple, clear and includes many examples, but it is undoubtedly not the same as picking up Nison's works on Candlesticks. Similarly, you can find many books dedicated to Elliot Waves, Fibonaccis and other topics. Murphy provides the basics, but do not expect as thorough an explanation or justification as a dedicated book would provide. Then again, expect a dedicated book to try and convince you why its particular system or method is so much better than any other, something that Murphey will not try to do to you! c) Finally, this book is NOT intended to convert people who do not accept TA into believers. Frankly, it is much easier to get most people to accept that `fundamental analysis' affects a stock's value and price, but it is harder for most to understand and accept that simply analyzing the stock's price and related indicators can predict future moves. Murphy's opening chapters include some simple basic background on TA, but verbal explanations have limited value in convincing a pure `fundamentalist' that properly used technical analysis works. The only way to break down this barrier, IMO, is simply to learn and use various indicators for a while to begin seeing how predictive they can be. Murphy does not try to convert - he simply provides a learning reference. From there, anyone using TA needs to practice to become proficient. So, in summary, I highly recommend buying this book for what it is intended to be - a reference book on technical analysis. It does this job excellently.

This is an absolutely fantastic book, both for new traders, new people trying to learn how to trade stocks, and even pros. It's easy to read, but it'll help if you understand or are willing to understand the financial lingo. It's as long as a college textbook, but reads very well; a high school student or graduate could read it and understand its contents. I'd suggest this to anyone trying to start out trading stocks in any manner so you have a basis for how to trade, understand trends and formations, and understand the various mechanisms within stock trading (buys, sells, closing positions, shorting, options trading, or futures, etc.). This way you have a solid foundation and have confidence in your abilities when you start trading. After reading this book, I'd suggest new traders start paper trading via a simulator so you can practice trading in preparation for the real thing and you can learn to apply what you've learned practically. I'd also suggest new traders start with this book and maybe a few others--if you're so inclined--before taking any courses on trading. You'll see a lot of the same content in these courses from this book, but again the book is a great initiator into trading.

First of all, this book is GREAT for the novice investor, and broker who is new to the investment industry such as myself. Due to the downsizing of my previous career, I made a career change to the stock market. Crazy I know, but I love it. Technical Analysis is not hard but can be confusing if you are not sure what all of the "pretty" lines represent. This book breaks it down for someone like me to where I can TRULY understand what a chart is telling me. True, charts CAN be subjective, but the numbers don't lie. Charts combined with some fundamentals can make you a powerful investor if you know what you are doing. The book is not so basic that it would bore a knowledgeable investor; even those who have been trading forever can learn something from this book. Murphy makes to where Technical Analysis makes sense! Now...Why do I think the world of Amazon? I've been watching the price of this book for about a year. I ordered this book due to a manager's recommendations (who allowed me to hold on to her book for a couple of months) and my company trainer's STRONG recommendations just recently. (No they do not work for this company and they are NOT receiving any proceeds for the recommendations.) I received the book and from the outside, the book appeared to be perfect. While flipping through the pages, I saw that pages were damaged in one section. I have been ordering from Amazon for years and not once have I ever had to return an item. This was the first one. I received my package on Tuesday, opened it on Wednesday, contacted Amazon via the web instructions, and dropped the book off at the local UPS location on Thursday. Also per Amazon's instructions, they wanted additional feedback on why I was returning the item. After leaving the feedback, I anticipated that I wouldn't receive the book for another week or so. The return instructions were SO easy it made my head spin. That's not even the best part. I was shocked when I saw I received an email that my replacement book was on its way on Thursday. Get this (here's the BEST part)...I received a PERFECTLY new replacement today, Friday. I am thoroughly impressed. My main purpose for ordering the book when I did was to have it in time for me to utilize when I return to my team on Monday. Due to the advanced training we've received at work, this book is something that will be useful for years to come.

This is an excellent book for someone who knows their market basics, and perhaps a little technical analysis, and wants to move toward a more intermediate level in the subject. The book is extremely clear, well-written, and balanced in its coverage. In a field with much poor writing and extravagant claims it's almost a joy to read (if one is so inclined). It was easy to spend the better part of an evening getting through 100 or more pages without getting confused or bogged down, or feeling like it was hard work. I found most all of it very thought provoking. While the book basically focuses on trend-following techniques -- about which I have many reservations -- the book also covers numerous contrarian tools as a way to time an entry into the predominant trend during a shorter-term pause/pull-back/consolidation period. The emphasis is as much on charting techniques as on strictly numerical indicators, and Murphy is probably at his best in explaining how best to use this or that item in the toolbox to ones advantage and what its limitations are and what can go wrong. The overall tone is very solid and realistic. I especially liked his clear exposition of the important differences between the futures/commodities markets (where many of these techniques originated) and the stock market. I'm marking it down one tick for a couple of reasons. First, I would have liked more quantitative depth; qualitative discussions such as this can only take one so far toward actual applications. Second, there's virtually nothing here on options and their effects on the markets; the same could be said about computerized trading systems (some coverage but not nearly enough). Third, there were a couple of glaring ommisions: in talking about saucer bottoms he doesn't mention the well-known tea-cup-with-handle formation even though the handle shows clearly on the chart he uses to illustrate it; when talking about simple moving averages he neglects to mention the important "box-car" effect of big changes moving out the tail end of the averaging period; and while Wilder's RSI gets plenty of good coverage the recipe for it he gives is a bit misleading in that it only allows one to construct the first value, not any subsequent values. And, fourth, I think he gives period analysis and Elliott wave theory more attention than is deserved and never mentions the application of Fourier techniques in this arena; I could say much the same with regard to ideas based on Fibonacci numbers (perhaps I'm yet unconvinced in these areas). So the book could have been better in some places. For their historical significance I especially liked all the charts from the 1997-9 time period which show things in the glory days just before the top of the market bubble in 2000: Intel at $100 ($20 today), Bristol Meyers at $95 ($20-25 today), crude oil at $16, etc. [I was trading Micron (pg 127) actively during the period when it spiked to $60 ($12-13 recently) and remember those days well]. So the many charts used to illustrate various things were a bonus to me, though they remind me there was no mention of market manias and how to correctly read extremes and their subsequent breakdowns. Perhaps it would have been asking too much for a closing chapter prognosticating the future as he saw it then, though it would have been interesting had he thought to write such a chapter. This is still a very good book for what it is. 4+ stars.

Good book

This book covers a significant amount of vital areas of stock market technical analysis. The author has presented a wide range of topics such as dow theory, chart patterns, candle patterns, moving averages and various indicators, Elliot wave and cycle theory, relative strength, market breadth, and inter-market linkage. The author even managed to present the basic ideas of the trading system. Reading his book is similar to taking a university course in that the professor sketches an outline and briefly highlights the main points. Afterward, it is the students who will read the rest of the references. This book is just like that! If you only read this book and feel like you can identify the chart patterns or recognize Elliot waves, please think again! Many people nowadays use this book as the bible for technical analysis rather than studying the excellent references recommended by the author. Once they fail to identify the chart patterns or notice the noisy indicator signals, they claim that technical analysis is bullshit as some of the books here on the Amazon. IMHO, this book mainly provides a breadth rather than depth. John's book is a top-level highlight of the coming attractions. However, the author offers a comprehensive list of the reference materials from specific domain masters. Without studying the details from the domain masters, you are unlikely to succeed in the technical analysis. In addition to this book, I have also bought John's - The Visual Investor, as the book uses many new charting tools that seem to be a compliment and upgrade from this original 1999 version. In summary, both books are excellent that cover the enormous landscape of technical analysis. I highly recommend them.

purchased and delivered the same day - "used like new". Arrived wrapped in plastic, had a sticker on the plastic that had been removed makes it "used"? Removed the plastic, opened the book and everything about it was new. This is the second time I've chosen "used - like new" and it's exceeded expectations both times. Huge fan, will be choosing this option on other products in the future. ANYWAY, love the book - it has all of the information I need to be learned by Wednesday, a millionaire by Thursday;)

I am working my way through the three levels of the CMT qualification, and after finishing level 2 study, pick up this text to go through in detail before the exam. It is the number 1 recommended book by some of the technicians which I have begun to follow. The book covers all the main aspects of technical analysis and is recommended as a "must-read" for good reason. Sections of this book are directly related to the CMT curriculum. I read the whole book cover-to-cover, twice. I need to know a little about many things for the exam, but know that I will be referring to some sections (like Trading Systems) many times in the future, and hopefully never going back to look at the section on others (point and figure, cycles). I don't know any individual investors who trade Futures markets, but for those of us who need to understand those markets, they are covered. The book is very well written and easy to follow. The best way to read it, is to take a chapter, then look at recent stock charts and try to apply the thoughts of the chapter to real-world current price action of assets.

Un must per chi è interessato alla analisi tecnica

Se eu disser que não creio em nada que AT diz você deve chegar a uma dessas conclusões :porque levar a sério a crítica de um livro justamente se ela partiu de uma pessoa que não crê no assunto?Se ele não acredita em AT porque comprou este livro. Respondo , apesar de militar no mercado por mais de 30 anos , em várias instituições e em diversos mercados , continuo aprendendo.Não deixo que nenhum livro me escape , principalmente sobre psicologia do trader , visto que desde o ano passado tenho vivido ( ao menos tentado) só de day trade com minha própria conta.Li muito sobre Análise Técnica , lia os boletins que Didi Aguiar e Márcio Noronha mandavam pras mesas de bancos e corretoras , livros em português ,três sobre candlesticks , " Japanese" , "Chart Patterns" , Explained" do Pring ( depois descobri que tem em português no site do Márcio Noronha) e jamais consegui entender como alguém enxerga padrão no gráfico , mas sei que pouquíssimas pessoas conseguem , admiro , mas ainda não consegui. Devido ao que está escrito acima é que considero o livro do Murphy o melhor deles , o autor foi o primeiro a admitir a dificuldade e a limitação da AT para os mercados futuros.Uma vez que os Futuros convergem com o ativo objeto ao passar do tempo não cabe admitir que 98200 pontos do índice Futuro Abril tenha o mesmo valor após um dia , após uma semana então... Murphy também me pareceu ( falo como pequeno conhecedor) o mais didático dos autores que li , ainda percebi que a escrita leve e , sobretudo , despretensiosa me deixou mais confortável do que autores que falam sobre " probabilidades com " certeza".O livro ainda conta com uma parte sobre manejo de risco bem interessante e a respeito dos diversos indicadores , Murphy , ao meu ver , foi bem mais didático que seus " concorrentes" , e isso me permitiu ver a que devo dar mais a tenção . Ótimo livro mesmo pra quem levanta dúvidas sobre a eficiência da AT. Recomendo mesmo sendo partidário da Tendência , minha técnica consiste em seguir quem "manda" e não discutir.

Perfect book. Only took 2 days to deliver. Very happ

Hiç beğenmedim çok eski bir yapım ve yeni başlayanlar için. Hiç işime yaramadı 3500 lira ödedim çok sinirliyim bu kitaptaki bilgilerden fazlasını kendi başıma para ödemeden bulabiliyorum. kitaptan çok umutluydum hayal kırıklığına uğradım.

Deliver was fast and quick. Book is authentic! But the handling of the book was poor. The photo was after trying my best to flatten and smoothing out the corner. Initial condition was worst than the photo.