Book of the Month - “Technical Analysis of the Financial Markets” by John J. Murphy

Book of the Month – “Technical Analysis of the Financial Markets” by John J. Murphy

Book of the Month - “Technical Analysis of the Financial Markets” by John J. Murphy

Our review of what many consider the “Bible” of technical analysis

Although there are books with more statistical analysis on how indicators are built and how they perform, this particular one remains a favourite among all readers who are looking for a understandable description of what technical analysis in trading is.

In this expanded edition (although it can seem a bit dated at times) we truly have all the bases covered for what technical analysis, what the thinking behind it is and it’s packed with examples.

It has a well laid out content and arrangement and for many it doubles up as a reference book long after they’ve read it for the first time.

The chapters cover charting, identifying trends, key patterns and behaviours of different instruments, moving averages, oscillators, cycles, etc. These act as the building blocks of the technical analysis, but the mortar that makes it all click is the way the author serves the information to the reader. There is no bias towards a specific indicator or style based on one of them. The language is clear and although it doesn’t lack its fair share of terminology things don’t get too deep into particularities that are hard to understand and make the more inexperienced switch off.

Explanations about how markets interact between each other, as well as the distinction between which indicators are suitable for markets that are trending and markets that are in a range, would be of great help to traders that have limited time. Money management and other aspects of trading that aren’t directly related with technical analysis are also touched upon, adding even more credibility to the overall message.

We can’t find many faults with the book, but keep in mind that it employs examples that suit its purposes and wouldn’t show cases that wouldn’t add value to the content itself. Intuition and experience still have a role to play for those that have studied the book and mixed with the excellent foundation provided here, that is what leads to building a solid trading style.

Leave a comment with your opinion about the Trading 212 PRO platform and your email and you could win the book as a gift from us.

7 thoughts on “Book of the Month – “Technical Analysis of the Financial Markets” by John J. Murphy

  1. Trading 212 PRO is a very exciting platform and easy to use. I want you to post on the website detailed examples of trading techniques and how markets interact with each other.

  2. your trading blog gave so much important information that my trading strategy improved very wel
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  3. Hi I am at a very early stage and I am look for knowledge this book could be the key to open the door for me

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