Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications SUB UPD EX Edition

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.

"Technical Analysis of the Financial Markets" by John J. Murphy is a bit tough but super helpful for learning how to read stock charts and make smart trading moves!

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;)

If I was only allowed to buy one book on trading everything from scalping figures to swing trading, this would be the one book I would buy. It covers they key topics on how to read charts with awesome visual examples and not just a long stream of text. I bought compies for other beginner traders I know as a gift to help them get started, which tells you more than any rating I could give or review I could write. Yes there are more complex books but this gives you a solid foundation on which to build.

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.