Weekend Read: A Book to Make you an ‘Expert’ Technical Analyst!
For all of you who are looking to start learning technical analysis or take it to the next level, there are plenty of good books available out there. However, John Murphy’s “Technical Analysis of Financial Markets” is a must-read for anyone interested in understanding the principles of technical analysis. The book provides a comprehensive overview of the subject, covering everything from basic charting techniques to advanced indicators and pattern recognition. I have read multiple books on TA, but this one is the best so far, hands down.
One of the key strengths of this book is its accessibility. Despite being a highly technical subject, Murphy manages to explain complex concepts in simple terms that are easy for beginners to understand. He also uses plenty of real-world examples with charts and case studies throughout the book, which helps readers see how these techniques can be applied in practice.
The first section of the book covers basic charting techniques such as trendlines, support and resistance levels, and moving averages. These are fundamental tools that every trader should know how to use effectively. Murphy explains each concept clearly and provides numerous examples so that readers can see how they work in different market conditions.
The second section delves into more advanced topics such as momentum indicators, oscillators, and volume analysis. These tools help traders identify trends early on and make informed decisions about when to enter or exit positions. Again, Murphy does an excellent job explaining each concept in detail while keeping things accessible for non-experts.
Perhaps one of the most valuable parts of this book is its coverage of pattern recognition techniques. This involves identifying specific patterns on charts that have historically led to certain outcomes (such as bullish or bearish reversals). While some may dismiss this approach as overly simplistic or even superstitious, there is no denying that it has been used successfully by many traders over time.
Overall, John Murphy’s “Technical Analysis of Financial Markets” is an outstanding resource for anyone looking to learn more about technical analysis. It covers all the essential concepts while providing plenty of practical advice based on real-world experience. Whether you’re new to trading or an experienced pro looking to refine your skills further – this book has something valuable for everyone!
I always get asked where to get these books about which I write every week. All these books can be bought from Amazon (NASDAQ:).
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