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

596 Pages·1999·20.34 MB·English

by  John J. Murphy

TECHNICAL
ANALYSIS

tie FINANCIAL
MARKETS

A COMPULIENSTYR GUIDE TO TRADING
‘aeTHOMS AND APPLICATIONS

TECHNICAL
ANALYSIS

fim FINANCIAL
MARKETS

A COMPREHENSIVE GUIDE TO TRADING.
METHODS AND APPLICATIONS

JOHN J. MURPHY

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Contents

About the Authar

Aout the Cou

Introduction — xx.
Acknowledgments xu

Philosophy of Technical Analysis 1
Introduction 2

Uhilosophy or Rationale 2

Technical vessus Furdamental Loreeasting

Analysis versus Timing 6

vi
vill

ances

Tlexibility and Adaptability of technical
Analysis 7.

‘echnical Analysis Applied to Dislerent Radmg
Medlums 8

‘Technical Analysis Applied (o Different Tae
Dimensians 9)

Economic Forecasting 10
luchovician or Christ? 10

A Brief Comparison of Technical Analysis in Stocks and
Tutmes 12

Less Reliance on Markel Averages and Indicators 14
Same Celicisms of the Technical Approach 1S
Random Walk Theory 29

Universal Principles 21

Dow Theory
Introduction 24
kasicTenets 24

‘The Use of Closing Prices and the Presence of
Lines 30

Some Ciltleismis of Dow Theory 3
Stocks as Econoraic Indicators. 32

Dow Theory Applied to Furures Trading 32
Conclusion 33

23
Churt Construction 35
Intwoduction 35

‘Types ol Charts Available 36

Caruliesticks 37

Asithrnotic versus Logarithmic Seale 39

Constiuction of the Daily Rar Chart 40

Younw 47

Futures Opens interest 42

Weekly and Monthly Har Charts 4S

Conclusion — 46

Basie Concepts of tread 9
Definition of end 49

Trond Has Thiee Directions 51

Trencl Has Three Classifications $2
Support and Resistance 55

Trendines 68

‘The Tan Pincple 74

‘The limportance of the Number Three 74
‘The Relative Steepness oF the Trendline 76
The Channel Line 80

Percentage Ketracenents 85