Hardcover: 556 pages
Publisher: Prentice Hall Press (March 3, 1986)
Language: English
ISBN-10: 013898008X
ISBN-13: 978-0138980085
Product Dimensions: 7.5 x 1.7 x 9.5 inches
Shipping Weight: 2.9 pounds
Average Customer Review: 4.4 out of 5 stars See all reviews (24 customer reviews)
Best Sellers Rank: #122,440 in Books (See Top 100 in Books) #36 in Books > Business & Money > Investing > Futures #45 in Books > Business & Money > Investing > Commodities #79 in Books > Textbooks > Business & Finance > Investments & Securities
Murphy has written a very good reference book, useful for brushing up on the finer points of charting, indicators and so forth. He also does a good job of going over the various technical theories with a straight face, neither endorsing favorites nor casting ridicule on the ones that are more logically suspect (ahem, cough, gann-elliott-fibonacci, cough cough).The only thing I really took issue with was Murphy's habit of trying to predict the size and extent of price moves, rather than sticking with more general observations regarding momentum and overall movement.Looking for something to happen before there is evidence of its arrival is a dangerous game for technical players, methinks. To devotees of the approach, a friendly warning -- be careful not to become a fundamentechnicalyst. Meaning, always keep in mind that effective technical analysis highlights probability rather than makes predictions.Since I just made up the word for this review, I'll now throw in the definition: A "fundamentechnicalyst" is one who makes predictions, just like the run of the mill fundamental analyst does... except the fundamentechnicalyst is making predictions based on technicals -- chart patterns and various indicators, rather than supply and demand, weather, politics, etcetera.In giving advance notice of how the movie is going to end, the approaches have similarity in their folly. The answer (in my opinion) is to not say, "aha! because of pattern ABC, result XYZ must now occur...."Instead, `tis better to say, "aha! because of pattern ABC, there is a favorable probability that XYZ could occur.
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