Traders & Investors Club

Author:

John Murphy

Buy From Abe Books...

Reviewer Rating:

5

Average:

5

Your rating: None Average: 5 (2 votes)

John Murphy published the first edition of his seminal work back in 1986. It was entitled Technical Analysis Of The Financial Markets and became the bible for technical analysts.

The latest version, which was originally published in 1998, has been expanded and revised. Perhaps most surpising is how little the fundamentals of TA have changed over the years. Even today, it is required reading for the STA and CMT examinations.

Amongst the topics that Murphy discusses are:

Dow Theory
Basic Concepts Of Trend
Identification Of Reversal & Continuation Patterns
Moving Averages
Oscillators
Candlestick Charting
Intermarket Analysis
Elliott Wave Theory
Cycle Analysis
Options Trading

On first look, the scope of material covered might appear a little daunting for the beginner. However, Murphy's writing style is very well-suited to the subject due to its clarity and conversational style.

The book includes over 400 charts and diagrams that bring the subjects to life, especially if you are, like me, a visually-orientated learner.

Each chapter stands on its own so it is not necessary to take a deep breath and plough through the 500+ pages in one go. This is most certainly a book that you will revisit time and time again as your technical analysis skills develop. It is an excellent foundation for your trading library.

Now the bad news. I believe that the book may be out-of-print as I have not been able to find a bookseller that currently stocks it. However, you can find several used copies advertised for sale on Amazon.

Even better, I would recommend trying Abe Books. There is a link on the right.

One word of warning. If purchasing the book online, be careful not to confuse the study guide with the book proper as the covers look very similar.

In conclusion, I highly recommend this book to both the beginner and intermediate technical analysts.