John J. Murphy is an American financial analyst and author with over four decades of experience in the markets. He served as the director of futures analysis at Merrill Lynch and was the senior technical analyst for CNBC.
Never trade directly against a prominent moving average.
Markets move in recognizable directions (uptrends, downtrends, or sideways) that persist until a clear reversal signal appears.
: Murphy explains various formations, such as head-and-shoulders (reversal) and flags or pennants (continuation), which signal potential future price movements. John J
John J. Murphy is a renowned technical analyst and author who has been involved in the financial markets for over 30 years. He has written several books on technical analysis, but "Technical Analysis of the Financial Markets" is considered his magnum opus. The book was first published in 1986 and has since become a classic in the field of technical analysis.
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This book is not just another trading manual. It is the essential, authoritative reference that has shaped generations of traders. Never trade directly against a prominent moving average
[Chart Patterns] │ ┌───────┴───────┐ ▼ ▼ [Reversal] [Continuation] • Head & Shoulders • Flags & Pennants • Double Tops/Bots • Triangles Reversal Patterns
Whether you prefer or long-term investing
Support and resistance are the horizontal foundations of chart reading. the trend has officially changed
Head and shoulders, triple tops/bottoms, and double tops/bottoms. Continuation Patterns:
Divergence between price and volume signals a weakening trend. Moving Averages
His most famous contribution is the or the concept of the Fan Principle . He argues that when two moving averages cross (e.g., 50-day crosses 200-day - the "Golden Cross"), the trend has officially changed, not just wobbled.
Calculates the average price over a specific number of time periods.