John J. Murphy: Technical Analysis of the Financial Markets
Trader's Library #42 · Technical analysis. The standard textbook of technical and intermarket analysis.
Author: John J. Murphy · Original: Technical Analysis of the Financial Markets; Intermarket Technical Analysis · Year: 1986 · Usefulness for traders: ★★★★☆
What it's about
Three books by Murphy: the comprehensive technical analysis textbook (originally published as “Technical Analysis of the Futures Markets”), its newer version “Technical Analysis of the Financial Markets”, and “Intermarket Technical Analysis” on the links between stocks, bonds, commodities and currencies.
What it gives a trader
Murphy's textbook is the standard where technical analysis begins: trend, support and resistance, patterns, volume, moving averages, oscillators. The intermarket part helps you understand why indices react to bonds or the dollar.
Lessons for traders
- technical analysis is a language for describing the market, not a prediction machine
- volume confirms or contradicts a price move
- markets are connected, and it pays to look wider than a single chart
What to watch out for
An encyclopedic textbook: lots of tools, little information about which ones actually work. Test before you use (the illusion of validity, Atlas of biases #20).
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #041 Currencies and Forex: Laidi and Dolan · Library index · #043 Trading Price Action: Trends and Reversals (Al Brooks) →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.