Charting Made Easy By John Murphy

“Charts can be used to time entry and exit points by themselves or in the implementation of fundamental strategies. Whatever way you chose to employ them, 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 introduction by John Murphy

Renowned market technician John Murphy presents basic principles of chart reading in easy-to-understand terms.

He covers:

• All types of chart analysis.
• “Need to know concepts” including trendlines, moving averages, reversal patterns, price gaps, price patterns, and more!
• Price forecasting and market timing applications.
• 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.

Table of Contents:

Chapter 1: Why is Chart Analysis so Important?

- Market Timing

Chapter 2: What is Chart Analysis?

- Charts Reveal Price Trends
- Types of Charts Available
- Any Time Dimension

Chapter 3: How to Plot the Daily Bar Chart

- Charts Are Used Primarily to Monitor Trends

Chapter 4: Support and Resistance, Trendlines and Channels

Chapter 5: Reversal and Continuation Price Patterns

- Reversal Patterns
- The Head and Shoulders
- Double and Triple Tops and Bottoms
- Saucers and Spikes
- Continuation Patterns
- Triangles
- Flags and Pennants

Chapter 6: Price Gaps

Chapter 7: The Key Reversal Day

Chapter 8: Percentage Retracements

Chapter 9: The Interpretation of Volume

- Volume Is an Important Part of Price Patterns
- On-Balance Volume (OBV)
- Plotting OBV
- OBV Breakouts
- Other Volume Indicators

Chapter 10: Using Different Time Frames for Short and Long Term Views

- Using Intraday Charts
- Going from the Long Term to the Short Term

Chapter 11: Using a Top Down Market Approach

- The First Step: The Major Market Averages
- Different Averages Measure Different Things
- The Second Step: Sectors and Industry Groups
- The Third Step: Individual Stocks

Chapter 12: Moving Averages

- Popular Moving Averages
- Bollinger Bands
- Moving Average Convergence Divergence (MACD)

Chapter 13: Oscillators

- Relative Strength Index (RSI)
- Stochastics
- Any Time Dimension

Chapter 14: Ratios and Relative Strength

- Sector Ratios
- Stock Ratios
- Market Ratios

Chapter 15: Options

- Option Put/Call Ratio
- Contrary Indicator
- CBOE Volatility Index (VIX)

Chapter 16: The Principle of Confirmation

Chapter 17: Summary and Conclusion