A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)

The good: Dow Theory, Major Reversal Patterns, Continuation
Patterns, Basic Concepts of a trend are problably the good
part of this book.

The bad: The section(s) on indicators and oscillators was
too brief for any reader to learn enough to trade.
I nearly wanted
to put this book aside when I started reading the part on
indicators and oscillators.

Quite a thick book with large wordings which I desire.
Have not finished yet. Being a thick book, there's bound to be something you find useful.

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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 a very well written book on Technical Analysis and is much better organized and easier to digest than the books recommended for preparation for the CMT exams (Pring and Dalton). I am a futures day trader and educator. Since the book was written and then revised before futures day trading exploded in feasibility and then popularity, it's focus is on technical analysis for position and swing trading much more than for scalping and intraday swing trading. That is the only reason that I rated it four out of five. A revision to strengthen treatment of technical analysis for day trading would be very worthwhile and welcomed.

This is relatively tough, especially if you do all of the quizzes. I consider it to be essential reading. I am a beginner and I want to read about everything even if it won't be of use to me in the path I take. The Dave Landry books are much easier, but not nearly as comprehensive.

The contents is actually quite interseting to read, but some parts of the books(especially the last few chapters) are incomplete and hard to follow. The book simply doen not really explain how to apply the conceots in real trading.

The book was indeed in 'VERY GOOD' condition. It had been read but the binding was still in good condition. There were very minor marks on the cover and no marks inside. Great seller, quick delivery also!

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.

As a well-respected technical analyst with 30+ years experience, there are few markets John Murphy has not seen. The difference between him and most other analysts is that he has documented them as they happened through his Murphy Market Message Newsletter. It is easy to look at a chart in hindsight and perform rear-view mirror analysis. Anyone can do that. What is more interesting is reading commentary from experts while the market is unfolding which is what Murphy does a number of times every week. His books are peppered with examples of market moves and quotes from his newsletter analyzing the move as it happened which makes reading his books all the more interesting.
As someone who basically introduced intermarket analysis to the broad technical analysis community, John has watched markets move one another since the late 1970s and documented the whys and whatfores and then carefully recorded his thoughts for the benefit of the rest of us.
Technical Analysis of the Financial Markets is without a doubt one of the best introductions and general discussions of technical analysis on the market today. It has been recognized by the Market Technicians Association and International Federation of Technical Analysts as such and is required reading for both the Chartered Market Technicians designation from the MTA and the Diploma of International Technical Analysis by IFTA. In fact, their required reading lists are great places to get ideas on which books the professionals are reading!
But it is a book that is not only for those new to trading and technical analysis. It is for everyone and anyone dedicated to improving their investment or trading returns by getting the right information direct from the source. It is a book I have read multiple times and will read again this year. It's well-written and an enjoyable read. It is also a book you won't get tired of reading over again and one that you will find a very useful reference. There is very little to complain about except that I wish it was longer. Then again I can't really complain with over 500 pages of great information and charts.
Matt Blackman - Technical Writer/Reviewer Email: [email protected]
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Contributor to Stocks & Commodities Magazine, Working Money, Traders.com Advantage, Active Trader, Traders Mag (Europe) and SFO Magazine

Have you decided that it is time that you understood what this market analysis stuff called "Technical Analysis" is all about? Then you should start with this book by John Murphy. Is it the best book on TA? It's certainly in the top three, and written by a man who has worked hard to educate people on charting, trendlines, indicators, systems, oscillators, etc.

Will you immediately become a successful trader by reading this book? Let's just say you have a heck of lot better chance at being a successful trader if you read, study, and integrate into your market research process what this book teaches.

If you are only interested in long-term investing, you probably don't need this or any of the other Technical Analysis books. But, if you want to trade on a daily, weekly or perhaps even monthly basis, you would be well served to read this book so that you at least understand what factors and indicators other people in the marketplace are watching -- people against whom you will be competing for profits.

This books details the basics of technical analysis fairly well. It focuses on chart patterns fairly extensively, but also deals with numerical methods, and other methods some basic books dont cover (point and figure and elliot wave, specifically). The coverage in any one area is not exhaustive, but it is reasonable.
There is some criticism that the question of 'does technical analysis work' is not answered. This is true, and i'm thankful for it; rehashing age old arguments isn't fit for a book of this nature. Most of the evidence suggests technically based methods are about the same as market returns -- but with significantly less volatility. That is, on a risk adjusted basis, they outperform.
This is a recommended book to start your learning process. Not all of it is good, and it should not be taken on face value, but a basic understanding of TA can be very useful. I'd read this after you read a Tharp or Elder, as Murphy does not deal too extensively with risk management, except in very general ways near the end of the book.

One way to learn technical analysis is to study a great book on the subject. This book is one of the very best of the many that I've read. Over 400 charts that clarify every key point of TA. Murphy does a great job of covering the fundamentals of TA and chart construction. The attention to trend, price patterns, major reversals and continuation patterns is second to none. Beginners and more experienced traders will find a large volume of useful and valuable information in this authoritative, yet easy to read masterpiece. This book, along with Technical Analysis of Stock Trends by Robert Edwards and John Magee are, in my opinion, the best books in print on the subject. The beginner will benefit from the extensive glossary as well as an easy to follow, yet comprehensive methods and applications.

This book is a very well written introduction to the Technical Analysis of the financial markets. It covers a lot of ground and for a text book style layout, it is surprisingly easy to read. Murphy starts with a solid introduction including the philosophy of technical analysis and a defense against the criticisms from academics and followers of the Random Walk Theory. The meat of the book is a comprehensive treatment of the core components of technical analysis including Trendlines, Reversal and Continuation Patterns, Moving Averages, and Oscillators. The author continues to dig deeper with Point & Figure Charts, Japanese Candlesticks, and Eliott Wave Theory.

As a big fan of Malkiel's "Random Walk Down Wall Street," I started reading this book with some healthy skepticism. While I was not converted to the chartist's philosophy, I felt like I did pick up some tools that could still be useful in a buy-and-hold strategy.

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.

I prefer Martin Pring's book called technical analysis explained. However, both books suffer the same shortfall that 99% of books on technical analysis have. They list every indicator but don't discuss accuracy. Their are only a few technical indicators that provide reliable signals and these should be identified and emphasized.
Buy James Smith's book Zero to £1 Million : My Stock Market Lessons and Techniques if you want to read a book that teaches you how to understand markets and how to trade, including what the best indicators are and how to use them. Its also a cracking good read and only $10.

I am a firm believer of using technical analysis when considering investing for the short term. To me a short term investing ranges anywhere from a few months to a year. I invest mostly in the commodity market, particularly gold and silver, and get amazed with the regularity with which I see meltdown in these markets. There were, three I think, in the year 2006, one or two in 2007 and there will be more in the coming years. The fundamentals are all good for these markets, but there is no running away form liquidations in these markets. The one in 2006 was apparently precipitated by $6.6 billion blow-up of Amaranth hedge fund. The summer 2006 meltdown in emerging markets also seemed to had a correlated move in the commodities market.

Relying on fundamentals alone can get one trapped in the markets which are undergoing serious corrections. A safer investing is when one listens to what market is trying to tell, this is where this book helps. I highly recommend this book!!

"Technical analysis of the Financial Markets" by John J. Murphy is an incredibly complete introduction to the world of technical analysis. From the outset, it is clear that Murphy has a predisposed bias towards the use of technical analysis (herein TA) leading to a successful and profitable career as a trader. However, it is also true that the author has a unique understanding of the subject, and moreover, is capable of sharing that with his readers in a very systematic and easy-to-understand manner. This is undoubtedly an excellent primer for someone looking to become proficient in TA.

I must say that I am solely concerned with trading the currency markets, and that prior to reading this book had but a novice understanding of how forex actually works. Everything Murphy discusses here is applicable to my area of interest, sans exception, whether that be directly or indirectly. I presume it is similar with other markets as well.
The concepts that Murphy addresses seem to be very traditional from a TA point of view. He does not present anything revolutionary, but in a sense, the fact that the book is so classic in its methods, yet contemporary in its application is revolutionary in itself. I believe he covers basically all basic-intermediate tools available, from support and resistance lines, to Wilder's RSI and Parabolic SAR, and candlestick analysis. I feel that if one was to read specific books on each of the major topics Murphy addresses than that would be adequate for them to apply TA confidently, and be able to profit consistently from the markets. The book as a standalone is not enough. Moreover, it does not discuss fundamental economic analysis of the markets, which I personally feel is important for attaining a gauge as to how the markets are performing long-term and what investor sentiment is like.

Regardless of all the critique I have mentioned, this book is incredibly well-written, and presented, and covers all the major ideas in technical analysis to a level that allows the reader to know what he is doing, when actually doing it.

Definitely 5 out 5 stars.

...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.