Technical Analysis of the Financial Markets

Mr. Murphy's book Technical Analysis of the Financial Markets was actually the first book that I had ever bought to learn about the markets. It's a monster hardcover packed with all the market fundamentals that you could ever imagine. For the newcomer this book provides a deep foundation of knowledge including everything you need, to understand the business. For those with experience the book still has plenty to offer and will make a great reference book to keep handy near your trade station.

When I bought the book a few years ago, I was still fairly new to the markets and "needed to know everything there was to know". Not that doing so was actually possible but starting with Murphy's book Technical Analysis of the Financial Markets was definitely taking a step in the right direction.

Reading the book for the first time was exciting. At the time it was all new to me and it was exactly what I needed, simple answers to a multitude of questions. It's easy to scour the internet and learn about such things as technical analysis and the markets. Reading forums and blogs, online documents posted by banks, brokers, and other traders - these sources are all good for information but most of the time they are biased or even contain completely the wrong information due to lack of experience of the poster. All your information is fragmented and the source of any tidbit of information is cloudy at best. In Murphy's book I could learn everything from an author with true pedigree. As a new trader you cannot ask for more and you should treasure these sources when you find them.

What I liked best about this particular book was that it read like a textbook. That's not always the best format but for the content of this volume its absolutely ideal. Murphy gives us a no nonsense topic by topic collection of knowledge. Its well written, easy to read and though I red it cover to cover like a novel, all the topics are encapsulated in their own chapters tightly so picking and choosing what you need is easy.

 

Rather than quoting a passage like I usually do, following is a table of contents of what you can expect within John Murphy's book Technical Analysis of the Financial Markets:

Contents of Technical Analysis of the Financial Markets

1. Philosophy of Technical Analysis
2. Dow Theory
3. Chart Construction
4. Basic Concepts of Trend
5. Major Reversal Patterns
6. Continuation Patterns
7. Volume and Open Interest
8. Long Term Charts
9. Moving Averages
10. Oscillators and Contrary Opinion
11. Point and Figure Charting
12. Japanese Candlesticks
13. Elliott Wave Theory
14. Time Cycles
15. Computers and Trading Systems
16. Money Management and Trading Tactics
17. The Link Between Stocks and Futures: Intermarket Analysis
18. Stock Market Indicators
19. Pulling It All Together - A Checklist

A - Advanced Technical Indicators
B - Market Profile
C - The Essentials of Building a Trading System
D - Continuous Futures Contracts

To conclude, I bought this book to build a foundation of understanding about Trading the in general and to adapt it to trading the Forex. Murphy essentially provides me 500+ pages of answers and information that got me started on the right foot. Technical Analysis of the Financial Markets was the right move for me and no matter your level of experience I think you would enjoy it and find it useful too.

About the Author (Preface xxiii)

John J. Murphy has been applying technical analysis for three decades. He was formerly Director of Futures Technical Research and the senior managed account trading advisor with Merrill Lynch. Mr. Murphy was the technical analyst for CNBC-TV for seven years. He is the author of three books, including Technical Analysis of the Futures Markets, the predecessor to this book. His second book, Intermarket Technical Analysis, opened up a new branch of analysis. His third book, The Visual Investor, applies technical work to mutual funds.

In 1996, Mr. Murphy founded MURPHYMORRIS, Inc., along with software developer Greg Morris, to produce interactive educational products and online analysis for investors. Their Web site address is: www.murphymorris.com.

He is also head of his own consulting firm, JJM Technical Advisors, located in Oradell, New Jersey.