Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)

This is a comprehensive guide to understanding and interpreting stock and commodity charts. It covers the subject in detail from point and figure charts to candle stick charts.

Every investor should own a copy of a book on Technical Analysis, if not this one, then a comparable volume.

This is an easy guide to technical analysis of the markets. It could be compared to the Edwards and Magee book on technical analysis. It has lots of illustrations showing many examples of all the items that are covered in this book and there are a lot.

Here is what you get: Chapter 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 Elliot Wave Theory. 14 Time Cycles. 15 Computers and Trading Systems. 16 Money Management and Trading Tactics. 17 Intermarket Analysis. 18 Stock Market Indicators. 19 Pulling it All Together. 19 chapters all together and like I said it covers a lot of ground.

Like any tech book it is not something that someone sits down to read for their personal enjoyment. This is a book that gives a good overview of a lot of different techniques that are all subjective. The patterns in here are not something you could put into your computer and trade but you will find them useful. The oscillators covered in here are used by most traders. After reading and looking at the different illustrations you will be able to pick out these classic signals while looking at charts. I have used things that are covered in this book like flags and triangles in 5 minute bar charts to make entry or exit decisions in the futures markets.

Overall this is a great book on technical analysis. It will give you an overall understanding of how many patterns and indicators are used. Anyone wanting to become a trader should know this stuff because they will use it. I have software that generates entry and exit signals but the computer can't "see" the chart. The tools in this book have helped me to filter out potentially bad trades and I think it will do the same for you. This is not the answer to trading profitably but it is certainly one of the keys.

A "must have" book to those who will venture in Technical Analysis. Considered to be the "Bible"...You cant go wrong with this one!!! an A+++

I am not going to write a review defending or attacking the practice of technical analysis, which is roughly defined as the use of historic trading data, especially prices, volume, and open interest, usually visually displayed as charts, in order to predict future prices of securities, currencies, and commodities. If you believe in pure market efficiency or fundamental analysis only, you're not interested in technical analysis and should stop reading right here. If you are interested in technical analysis, this is an excellent place to start.

Description:
Murphy's basic text, updated substantially from its first edition, walks the reader through the fundamentals of the most common forms of technical analysis. Each major topic typically receives a chapter giving basic definitions and an introduction to the subject. Topics covered include but are not limited to:
* Dow Theory, the beginning of Western technical analysis
* Basic chart construction (i.e. how to draw a bar or candlestick chart)
* Classical charting formations and techniques
* Trends, how to identify and draw
* The use of volume and open interest
* Japanese candlesticks
* Point and figure charting
* Oscillators
* Elliott Wave theory
* Time cycles
Murphy's text addresses specifics of both futures and stocks. The book was originally written for the futures markets, but material salient to stocks, such as market breadth. This book is part of the curriculum for the Market Technician Association's CMT (Chartered Market Technician) Level I exam because it gives an overview and introduction to many major technical analysis topics.

Opinion:
Murphy's book has long been one of the classics of technical analysis literature. This book will allow the reader to quickly become familiar with the field; even experienced traders often keep it on their bookshelf to refresh their memory once in a while. The major flaw behind this book is that, due to its encyclopedic breadth, each topic receives only an introduction. It is unlikely the novice technician would be prepared to trade off Japanese candlesticks or Elliott Wave counts using only the material in this book. Murphy's book is, however, an excellent place to start and specialty books can be purchased later for any topic in which the reader is especially interested.

The thing about this book is that it gives you a fast overview of all the key points of a subject. The book is 500+ pages because it covers a lot of subjects. I'm reading here on a web site about Dow Theory, and I can't skim it very well. The book by John Murphy is written so you can skim through each subject and get a feel, and provides the key details. At least, that was how it was for me. Many articles you can find on technical analysis are so in depth you get overwhelmed by the details, or so brief you don't feel you grasp it. John Murphy selects facts of most importance, and implies the missing detail that can be found in the books written specifically on each subject by their inventors. Every topic of technical analysis could itself be a huge book. I think John Murphy found the balance with this technical analysis book. It is well suited as a fast reference for busy people, without leaving out any of the key elements of the subjects he covers.