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Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New ...
John J. Murphy

Prentice Hall Press, 1999 - 576 pages

average customer review:based on 96 reviews
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   highly recommended  highly recommended




The TA BIBLE FOLKS - Long but very in-depth

John Murphy was the technical analysis commentator on CNBC for the longest time and was on TV almost daily for several years. He now runs his own company, murphymorris.com. Before you think about buying this I ask you "Why are you thinking about buying this book?"

If you are seeking a good introduction to technical analysis then try his cheaper and easier to read book entitled The Visual Investor. If you read that book and want to learn more about the subject then read on!

This behemoth of a book (over 540 pages total!) is easy to read and learn but is definitely more suited and designed for those seeking intermediate to advanced knowledge on technical analysis. Don't get me wrong; you can start here but the odds of you finishing, if you are a beginner, are slim.

Murphy starts with the basics, then goes into more advanced principles and then explains linkage (how certain sectors outperform when others under perform.) He talks about commodities and equities throughout the book and it is a very good evaluation of market trends. There are tons of graphs to help the reader along.

This book definitely 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).

I personally believe that technical analysis should be incorporated into just about any decision-making process when investing for any fund, stock and/or options. While fundamental analysis should be where most efforts start applied technical analysis can help people in picking entry and exit points to "avoid fighting the tape" which is a real problem for investors in the market. If you are a trader you are missing so many opportunities by not learning TA. This is the book to learn TA with! Get this book and the accompanying study guide.


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Don't look for perfection...

...for it doesn't exist...but if you're looking for a or some book(s) that come(s) as close as possible to it, Mr Murphy's book is one of them.

I've always thought that fundamental analysis alone is far from being enough to make one a good trader (as a matter of fact reading the Enron's numbers, one would think, until a few months ago, that the company was fundamentally very sound). This is one of the first books that made me believe more and more in technical analysis. Mr Murphy has a rather special and simple way of explaining various things, whether they're new to you or not, and proving why this would be right and why that would be wrong. Besides, his book is packed with well-explained typical examples of charts and indicators of almost any kind of situation.

Despite the fact that this book is not flawless and that there's some fluff here and there, I still think this is one of the best ones ever written on technical analysis, establishing Mr Murphy as one of the best in his domain, together with (in my opinion) Victor Sperandeo, John Bollinger and Steve Nison. Furthermore, its recent edition is better than the former one, so let's hope that there'll be another one in the years to come better than its predecessors.


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If you ever needed to get "THE" book on TA...

...then buy this book. Actually, I would call it "THE TEXTBOOK" on Technical Analysis. Murphy's reputation usually preceeds him at every trading event I have ever been to and for good reason. He has put together a clear and concise compendium of TA techniques that is accessible to beginners; though an intermediate or advanced trader would be better served. I have been trading for several years and use this book to refer to when devising new strategies. For those new to TA, let me add that I find TA most effective when I have good fundamentals to confirm a technically based move. You should understand that many traders and market makers read these books too. So, you may want to adjust your stop loss orders to something other than what is conventionally accepted. Check out the 1-Day Breakout Method, from experienced technician Eddie Kwong, to see what a fully developed TA strategy looks like.


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reviews: 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, page 14, 15, 16, 17, 18, 19, 20



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