Charting Made Easy

John J. Murphy has authored three best-selling books on technical analysis, including Intermarket Technical Analysis and The Visual Investor. His latest work, Technical Analysis of the Financial Markets(1999), is a revised edition of his 1986 classic which has been translated into eight languages. He is president of MURPHYMORRIS.COM which produces interactive educational products on technical analysis and online analysis for investors. As the former host of CNBC's Tech Talk show and a speakeer at all the major trading and investment forums and conferences around the world., Mr. Murphy is one of the most recognized and highly respected technical analyts of our time.

• Introduction ixChapter 1. WHY IS CHART ANALYSIS SO IMPORTANT? 1Market Timing 2Chapter 2. WHAT IS CHART ANALYSIS? 3Charts Reveal Price Trends 4Types of Charts Available 5Any Time Dimension 5Chapter 3. HOW TO PLOT THE DAILY BAR CHART 7Charts Are Used Primarily to Monitor Trends 7Chapter 4. SUPPORT AND RESISTANCE TRENDLINES AND CHANNELS 9Chapter 5. REVERSAL AND CONTINUATION PRICE PATTERNS 13Reversal PatternsThe Head and Shoulders 13Double and Triple Tops and Bottoms 14Saucers and Spikes 15Continuation PatternsTriangles 16Flags and Pennants 20Chapter 6. PRICE GAPS 23Chapter 7. THE KEY REVERSAL DAY 25Chapter 8. PERCENTAGE RETRACEMENTS 27Chapter 9. THE INTERPRETATION OF VOLUME 29Volume Is an Important Part of Price Patterns 30On-Balance Volume (OBV) 30Plotting OBV 31OBV Breakouts 32Other Volume Indicators 32Chapter 10. USING DIFFERENT TIME FRAMES FOR SHORT- AND LONG-TERM VIEWS 35Using Intraday Charts 35Going from the Long Term to the Short Term 36Chapter 11. USING A TOP-DOWN MARKET APPROACH 39The First Step: The Major Market Averages 39Different Averages Measure Different Things 40The Second Step: Sectors and Industry Groups 41The Third Step: Individual Stocks 41Chapter 12. MOVING AVERAGES 45Popular Moving Averages 45Bollinger Bands 46Moving Average Convergence Divergence (MACD) 46Chapter 13. OSCILLATORS 47Relative Strength Index (RSI) 47Stochastics 47Any Time Dimension 49Chapter 14. RATIOS AND RELATIVE STRENGTH 51Sector Ratios 51Stock Ratios 51Market Ratios 52Chapter 15. OPTIONS 53Option Put/Call Ratio 54Contrary Indicator 54CBOE Volatility Index (VIX) 54Chapter 16. THE PRINCIPLE OF CONFIRMATION 55Chapter 17. SUMMARY AND CONCLUSION 57Investing Resource Guide 59