Description
Technical analysis of the financial markets by John. Murphy was published in 1999 by the New York Financial Institution. For more than 5 years, this book has been the best-selling printed educational resource in the field of investment (related to financial markets) and has been translated and reprinted in several official languages of the world. According to many professional traders and students who have read it, John Murphy’s work is arguably one of the most complete educational resources in the field of graph analysis of various assets and financial instruments. To get more acquainted with the book Technical Analysis in the Capital Market, we will briefly introduce the main topics of the book.
Before starting to study the common techniques and tools used in technical analysis, it is necessary to first determine what technical analysis is. We must first identify and distinguish between the differences between technical and fundamental analysis, and then address the criticisms of this method. The author of the book believes that a clear understanding of technical analysis should be in line with the ability of this method.
Perhaps more important is the philosophy or logic on which the claims are based. We begin the discussion with the question, what is technical analysis? Technical analysis of market performance is primarily through the use of charts to predict future price trends. Improving market performance has three basic principles for technicians: prices, current trading volume, and interest. Correcting price behavior in the market seems very narrow and small on the charts, because technicians usually consider trading volume and free interest as inseparable components.
One of the main concerns of people when starting to learn various scientific topics is access to credible educational resources. If we limit these resources to courses and textbooks, not all people will be able to access all of them at the same time.
Therefore, compiling and publishing comprehensive and basic resources is one of the basic requirements of the learning process in any field. At present, due to the comprehensive expansion of the influence of financial markets in modern human life, we always see the entry of new investors into this market, and since investing in the stock market is a highly specialized activity; The growing need for analytics and trading training resources in this market is undeniable. In this article, we introduce one of the best-selling books on financial market analysis entitled “Technical Analysis in the Capital Market” written by John. جی. We pay Murphy.
Many investment students often complain about this; Despite studying a lot of resources and participating in various courses, they are still not ready to make real trades or have suffered heavy losses after entering the market. Even if the main reason for this situation is due to the individual mistakes of the trader, but the lack of proper training in this field is quite tangible.
“John. جی. Who is Murphy?
John Murphy is a well-known American financial analyst, who is called the father of technical analysis of market insights. He has authored and published numerous books in the field of stock market analysis and in this regard is one of the most prominent financial market analysts. After graduating from CIT Finance, he worked as a portfolio assistant and graph analyst. Murphy joined Merrill Lynch in the early 1970s and was later promoted to director of technical analysis. After gaining fame and continuing his career, John moved to the New York Financial Institution to pursue training and investment consulting courses.
Capital Market Technical Analysis Book
1- Philosophy of technical analysis
The first chapter describes the existential philosophy of graph analysis, its advantages over other methods, and some criticisms of technical analysis.
2- Dow theory
In the second chapter of the history, the basic principles and possible problems of the basic theory of technical analysis are mentioned along with its real graphic examples.
3- Chart structure
By studying the third chapter, you will understand the structure and different types of price charts, timeframes and the effect of trading volume on technical analysis.
4- Introductory concepts of the process
In this chapter, in order to create the ability to correctly identify price movements in book readers, the concept of price trend, trend lines, support and resistance, channel lines, return percentages, Fibonacci ratios and other important tools of traditional graph analysis are discussed.
5- Important return patterns
Identifying turning points is one of the most important goals and concerns of graph analysts. By studying this chapter, you will find a good view on the logic of price patterns, their types and how to determine the goals of price movements based on these patterns.
6- Continuing patterns
Opposite the return patterns of the price chart are the continuing structures. Chapter 6 defines and details the patterns of triangles, flags, rectangles, angles, divergences, convergences, and how to use them in real-world examples from different markets.
7- Trading volume
Volume is at the same time one of the main components of the market trading table and technical analysis. Chapter 7 includes how to interpret the daily volume and describe the nature of the various indicators based on it.
8- Long-term charts
As you read Chapter 8, you will learn about different types of investment horizons, including short, medium and long term. After reading this chapter, you should be able to choose the best time investment approach for your personal trading.
9- Moving averages
After explaining the basic concepts and tools of price chart analysis, John Murphy discusses the intriguing topic of technical indicators. Chapter 9 includes the definition of moving average means, the relationship between mean and time cycle, the use of Fibonacci numbers in means, and how to optimize them.
10- Oscillators
In the tenth chapter of the book, you will be fully acquainted with the types and applications of the most important oscillators used by traders, including Stochastic (K% D), RSI, Commodity Channel Index (CCI), Larry Williams (% R) and MACD (MACD).
11- Graph of points and digits
These types of financial market price charts sometimes seem mysterious and ambiguous to many traders. One of the best educational resources for understanding the structure, methods of interpretation and trading techniques of point and number diagrams is Chapter 11 of this book.
12- Japanese candle charts
In Chapter Twelve, John Murphy describes one of the most popular analytical tools for stock market traders. In this chapter, the basic definitions of price candles, different types of candle patterns and how to deal with them are mentioned along with a complete visual guide to these price structures.
13. Elliott Wave Theory
In compiling this book, in addition to introductory topics, advanced concepts and methods of technical analysis in the financial market have also been considered. Chapter 13 covers the history and basics of Elliott waves, wave counting methods, canalization, and the use of Fibonacci numbers in Elliott theory.
14. Time cycles
In addition to analyzing price movements, examining the time dimension of the chart has always been of great importance. Chapter 14 describes the concept of time cycles, their effect on long-term movements, and how they combine with other technical tools.
15. Computers and trading systems
Chapter 15 contains important and practical information about the role of computer tools in the graph analysis process. In addition to these topics, the nature of mechanical (machine) trading systems along with their advantages and disadvantages are also explained.
16. Financial management and transaction tactics
After fully explaining the basic and advanced concepts of technical analysis, Chapter 16 of the book describes the very important topic of capital management, types of trading orders and the basic elements of successful trading.
17- Capital market indicators
In order to get acquainted with other important and side indicators of technical analysis, a detailed study of the seventeenth chapter is considered important. In fact, by correctly interpreting tools such as the Progress-Regression Line (AD), the McLellan Oscillator, and the Arms Index, you will have a more accurate assessment of market conditions.
Summary and summary
In the final chapter of the book, important concepts such as technofundamental approach, how to formulate and optimize personal trading strategy in order to prepare the audience to enter the real transactions of the financial market are included.
Translation and publication of John Murphy’s book Technical Analysis in Iran
The book Technical Analysis in the Capital Market was translated by Messrs. Kamyar Farahanifard and Reza Ghasemian Langroudi, and its first edition was published in the summer of 2005 by Chalesh Publications. Note also the quality of the Persian translation of this book; According to the experiences and records of those in charge, the text has been translated into a very clear and understandable language; To be fully practical and suitable for all traders, both beginners and professionals
This book is published by Challenge by John J. Murphy, translated by Kamyar Farahanifard and Reza Ghasemian Langroudi, has been published; It has been written in 18 chapters, which we will describe below:
Philosophy of Technical Analysis:
* Introduction Technical analysis of the financial markets
* Philosophy or logic
* Technical analysis against fundamental predictions
* Flexibility and compatibility of technical analysis
* Technical analysis and its efficiency in different time periods
* Economic forecasts
* Technical analyst or chartist?
* Some criticisms about technical analysis
* Random walk theory
* General principles
Dow theory
*Introduction
* Basic principles
* Use end prices and lines
* Some criticisms of Dow’s theory
* Capital market as an economic indicator
* Result
Chart structure
*Introduction
* Types of charts available
* Candle charts
* Arithmetic diagrams versus logarithmic diagrams
* Daily bar chart structure
*Turnover
* Monthly weekly chart
*Conclusion
Daily introductory concepts
* Process definition
* The process has three directions
* Trends are divided into three categories
* Supports and resistances
* Trend lines
* Original fan
* The importance of the number three
* Relative slope of the trend line
* Channel line
* Correction or return percentage
* Acceleration lines
* Gann and Fibonacci fan lines (Gann)
* Internal trend lines
* Price gaps
* Result
Important return patterns
* Introduction
* Price patterns
* Two types of templates:
* Return patterns and continuation patterns
* Back pattern of head and shoulders
* Importance of transaction volume
* Find the price target
* Floor and inverted heads and shoulders
* Composite head and shoulder patterns
* Triple ceilings or floors
* Twin ceilings and floors
* Changes in the ideal pattern
* Saucers and spikes
* Result
Continuing patterns
* Introduction
* Triangle
* Symmetric triangle
* Incremental triangle
* Decreasing triangle
* Flattening pattern (triangle)
* Triangle flags and rectangular flags
* Corners
* Form a rectangular pattern
* Rhythmic movement
* Continuous pattern of head and shoulders
* Confirmation and divergence
*Conclusion
Turnover
* Introduction
* Trading volume as a secondary indicator
* Summarizing the principles of transaction volume
Long-term charts
* Introduction
* The importance of long courses
* Deny that long-term trends are random
* Should long-term charts be adjusted for inflation?
* Long-term charts are not suitable for trading purposes.
* Examples of long-term charts
Moving averages
* Introduction
* Moving Average: Flexible expression with time delay
* Moving average development
* Bollinger Bands
* Use Bollinger Bands to set a price target
* Measure changes with bandwidth
* The relationship between moving average and time cycle
* Application of Fibonacci numbers in moving averages
John Murphy’s book Technical Analysis of the Capital Market
The book Technical Analysis in the Capital Market by John Murphy consists of 18 chapters and two appendices, which comprehensively and completely examines the general principles of technical analysis. According to the principles and scope of the content, the book Technical Analysis in Capital Markets can be considered as a complete reference for all analysts.
1- Introducing the book Technical analysis of the financial markets on YouTube
2- Introducing the book Technical analysis of the financial markets in Aparat
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