Study Guide to Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

by John J. Murphy

Overview

This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotations, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.

Product Details

ISBN-13:	9781101659205
Publisher:	Penguin Publishing Group
Publication date:	01/01/1999
Sold by:	Penguin Group
Format:	eBook
Pages:	160
Sales rank:	480,876
File size:	2 MB
Age Range:	18 Years

About the Author

John J. Murphy is President of MURPHYMORRIS, Inc., a producer of interactive educational products for technical analysis. A former technical analyst for CNBC and director of Merrill Lynch's Technical Analysis Futures Division, he is the author of The Visual Investor and Intermarket Technical Analysis.

Read an Excerpt

This self-study manual has been designed and prepared by the New York Institute of Finance, with the cooperation and input of John J. Murphy.

This workbook is to be used exclusively with John J. Murphy's Technical Analysis of the Financial Markets (referred to as the "text").

The workbook's objective is to test--and thereby 'to ensure--your comprehension of the large body of knowledge associated with technical analysis.

The methodology is simple to follow and uses your time efficiently. Here are the recommended steps:

Before reading the textbook, go to Lesson One in the Study Guide (page 1). There you will find the Reading Assignment, which for the first lesson is Chapters 1 and 2 of the text. You will also find a set of reading Objectives and a Reading Orientation, which give your reading focus and direction. Also note the list of Key Terms (page 2). Following each term is a page reference indicating where in the text you can find a definition or explanation of the term. Pay special attention to these terms.

Read the chapters assigned for the lesson. As you read, stay aware of the objectives and key terms. Ask questions of the text. Don't be afraid to underline what you feel is important--or make marginal notes.

Go to the Challenge section of the lesson (starting on page 3). There you will find a Matching Quiz, Multiple Choice, and sometimes Fill-In questions. Answer the questions "closed book" as best you can.

Turn to the Answer Sheet, and compare your answers against those given there. To "grade" yourself on these exams, divide the number of correct answers by the total number of answers and multiply the answer by 100. The result is your percentage right. Should your "grade" be lower than 65%, you should re-read the material for that lesson.

The purpose of this comparison, however, is not to give yourself a grade. Rather, it is to determine the areas where your comprehension is weak. Toward that end, each answer has a page reference to the text and a brief explanation of why the answer is correct. We suggest that you follow up these page references by re-reading the relevant sections of the text and making sure you understand the answer.

Once you have taken these steps for Chapters 1 and 2, proceed with Lesson Two, beginning on page 7.

This workbook has been produced with the utmost concern for accuracy and freedom from error.

Nevertheless, we welcome your comments with regard to improvement.

-New York Institute of Finance Publishing Division

Table of Contents

How to use this workbook, vii
Lesson 1: Technical Analysis and the Dow Theory,1
Lesson 2: Chart Construction, 7
Lesson 3: Basic Concepts of Trend, 15
Lesson 4: Major Reversal Patterns and Continuation Patterns, 31
Lesson 5: Volume and Open Interest, 43
Lesson 6: Long-Term Charts and Commodity Indices, 55
Midterm Assessment, 57
Lesson 7: Moving Averages, 75
Lesson 8: Oscillators and Contrary Opinion, 87
Lesson 9: Point and Figure Charting and Japanese Candlesticks, 99
Final Assessment, 115