John Murphy on
Chart Analysis
Renowned market technician John Murphy
presents basic principals of technical analysis in easy-to-understand
terms. In this book, he covers:
- All types of chart analysis
- "Need to Know" concepts,
including trendlines, moving averages, price gaps, reversal
patterns, volume & open interest, spreads, and more
- Price forecasting and market timing
applications
- A full resource guide of technical
analysis aides
- How to use the industry's top tools
to obtain a better understanding of what charts can do-and how they
can help you grab yor portion of today's trading profits.
Enclosed in the book is a FREE CD-ROM
that includes:
A full working version of CRB Powerlink, an internet interface to
downloading historical dat from Bridge/CRB over the internet.
The full CRB/SystemMaker software program. This is a full technical
analysis application that creates all of the usual charts and technical
studies. But its real attraction is its ability to create, backtest, and
optimize self designed trading systems without any programming knowledge
or experience.
A demonstration of the CRB Yearbooks on CD-Rom product. This product
contains the full content including all text, tables, and charts from
every CRB Yearbook published since 1965.
Table of Contents
Why is Chart Analysis so Important? 3
Market Timing 3
What is Chart Analysis? 4
Charts Reveal Price Trends 5
Types of Charts Available 5
Weekly and Monthly Bar Charts 5
Price, Volume and Open Interest 7
How to Plot the Daily Bar Chart 7
Charts are Used Primarily to Monitor Trends 9
Support and Resistance 9
Trendlines and Channels 10
Reversal and Continuation Price Patterns 12
Reversal Patterns:
The Head and Shoulders 13
Double and Triple Tops and Bottoms 14
Saucers and Spikes 16
Continuation Patterns:
Triangles 19
Flags and Pennants 22
Price Gaps 24
The Key Reversal Day 25
Percentage Retracements 25
The Interpretation of Volume and Open Interest 27
Volume is an Important Part of Price Patterns 28
Open Interest Measures the Flow of Money 28
Commitments of Traders Report 29
Seasonal Considerations in Open Interest 31
Obtaining Valuable Long-Term Perspective
with Weekly and Monthly Continuation Charts 32
How to Construct Continuation Charts 32
Going From the Long Term to the Short Term 34
The CRB Futures Price Index and the CRB Group Indices 35
The CRB Index Should Be the First Step in Market Analysis 36
The Second Step: The CRB Futures Group Indices 37
The Third Step: The Individual Markets 37
Moving Averages and Oscillators 39
The CRB 10- and 40-Day Moving Averages 40
The CRB Current Relative Strength (CRS) Oscillator 41
Combining the Moving Averages and CRS Oscillator 42
Computer Trend Analysis 43
Using the Computer Trend Analyzer as a
Technical Filter and as a Mechanical
Alert for Possible Trend Changes 45
Commodity Spreads and Ratios 46
Commodity Options 49
The Principle of Confirmation 50
Summary and Conclusion51
Recommended Reading 52
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