Here is a treasure trove of easy to use tools for mapping your course through today's market. Whether you're using online charts or a professional charting software program, these techniques from master technician John Murphy can increase your trading success.
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"One of the greatest benefits of technical analysis is its applicability to any and all markets ... charts can be an extremely valuable tool-if you know how to use them. This booklet is a good place to start learning how."
-from the foreword by John Murphy
Renowned market technician John Murphy presents basic principals of technical analysis in easy-to-understand term.
- 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 aide
- 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 your portion of today's trading profits.
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Table of Contents:
Why Is Chart Analysis So Important?
What Is Chart Analysis?
Charts Reveal Price Trends
Types of Charts Available
Any Time Dimension
How to Plot the Daily Bar Chart
Charts Are Used Primarily to Monitor Trends
Support and Resistance
Trendlines and Channels
Reversal and Continuation Price Patterns
The Head and Shoulders
Double and Triple Tops and Bottoms
Saucers and Spikes
Flags and Pennants
The Key Reversal Day
The Interpretation of Volume
Volume Is an Important Part of Price Patterns
On Balance Volume (OBV)
Other Volume Indicators
Using Different Time Frames for
Short- and Long-Term Views
Using Intraday Charts
Going from the Long Term to the Short Term
Using A Top-Down Market Approach
The First Step: The Major Market Averages
Difference Averages Measure Different Things
The Second Step: Sectors and Industry Groups
The Third Step: Individual Stocks
Popular Moving Averages
Moving Average Convergence Divergence (MACD)
Relative Strength Index (RSI)
Any Time Dimension
Ratios and Relative Strength
Option Put/Call Ratio
CBOE Volatility Index (VIX)
The Principle of Confirmation
Summary and Conclusion
Investing Resource Guide
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Chart analysis, and the use of technical analysis, has become extremely popular during the last decade. Both the internet and the low cost software packages currently available make learning and applying the power of chart analysis to trading more accessible than ever to the all investors.
But as master technician John Murphy points out in his new booklet, Charting Made Easy, having access to this information is helpful ONLY if investors and traders know what to DO with it. Investors who learn how to interpret charts can use them to spot significant trend changes immediately - allowing them to take advantage of the big opportunities these shifts present.
Now, two brand new products featuring John Murphy, the former CNBC "Tech Talk" host, are available to help traders of every experience level learn how to read, interpret and apply charts for achieving profitable results - trade after trade..
Charting Made Easy, as the title implies, is a fairly basic introduction to the world of charting. It is a brief, compact booklet covering the basics in short, to-the-point chapters. Readers will find everything from why charting is such an important tool in market timing to …
- recognizing price trends and shifts in trends
- how to plot daily bar charts
- options basics
- using support and resistance levels, reversal and continuation patterns, price gaps, moving averages, oscillators, and the important principal of confirmation.
It is, by no means, a comprehensive technical analysis resource. But it is a very valuable overview and introduction to technical analysis - explained in clear, non-technical language, and illustrated with visual charts. It's a great primer for newcomers, and a handy refresher guide for more experienced players.
An excellent complement to Charting Made Easy is a new 90 minute "video" course called "High Probability Chart Reading with John Murphy." This hands-on tutorial allows viewers to learn and perfect the most important aspects of technical analysis at their own pace, in the privacy of their own home - while enjoying the expertise of a true pro like John Murphy.
And, while it reinforces many of the concepts presented in Charting Made Easy - it also covers each item in more depth and reveals …
- The price patterns Murphy has found most reliable over time
- His personal favorite indicators
- The importance of using them in conjunction with one another
Murphy also explains his pioneering work in the field of intermarket analysis - a proven analytical approach based on evaluating the impact different markets have on each other. He shows traders the ins and outs of trading, supported by real world examples, while also schooling viewers in the art of reading the markets by "visually" comparing charts, rather than employing complicated technical concepts.
As John Murphy himself notes, "Charts can be used by themselves, or in conjunction with fundamental analysis. Charts can be used to time entry and exit points by themselves or in the implementation of fundamental strategies. Whichever way you choose to employ them, charts can be an extremely valuable tool - if you know how to use them."
"It's not necessary to be an expert chartist to benefit from chart analysis. However, chart analysis will go a long way in keeping the trader on the right side of the market and in helping to pinpoint entry and exit points, which are so vital to trading success. Whether a participant is a day trader or a long-term investor - it's to his or her advantage to learn about chart analysis."
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