Table of Contents: Summary of the book
Part I: Foundations of Technical Analysis
Chapter 1: Philosophy of Technical Analysis
- Covers the three premises of technical analysis, comparison with fundamental analysis, and the Dow Theory basics.
Chapter 2: Chart Construction
- Details bar charts, line charts, point-and-figure charts, and the basics of candlestick charting, including volume and open interest.
Chapter 3: Basic Concepts of Trend
- Defines trend direction, support and resistance, trendlines, channels, and percentage retracements.
Part II: Major Chart Patterns
Chapter 4: Major Reversal Patterns
- Analyzes the Head and Shoulders, Triple Tops/Bottoms, V-Tops, and Diamond patterns.
Chapter 5: Continuation Patterns
- Covers Triangles (Symmetrical, Ascending, Descending), Flags, Pennants, and Rectangles.
Chapter 6: Volume and Open Interest
Explains the role of volume in confirming trends and patterns, and open interest in futures markets.
Part III: Technical Indicators and Systems
Chapter 7: Long-Term Charts and Commodity Indices
Focuses on weekly/monthly charts, CRB Index, and intermarket relationships.
Chapter 8: Moving Averages
Discusses simple, exponential, and weighted moving averages, including crossover systems and bands.
Chapter 9: Oscillators and Contrary Opinion
Covers RSI, Stochastics, MACD, and sentiment indicators (put/call ratios, bullish consensus).
Chapter 10: Point-and-Figure Charting
Deep dive into construction, box sizes, and specific P&F patterns.
Chapter 11: Japanese Candlesticks
Comprehensive guide to single and multiple candle patterns (Doji, Engulfing, Harami, etc.).
Part IV: Advanced Concepts & Application
Chapter 12: Elliott Wave Theory
Introduction to wave patterns, Fibonacci ratios, and wave counting rules.
Chapter 13: Cycle Analysis
Discusses market cycles, seasonality, and time factors in trading.
Chapter 14: Intermarket Analysis
Murphy’s specialty: Relationships between currencies, commodities, bonds, and stocks.
Chapter 15: Stock Rotation and Sector Analysis
How to analyze relative strength between sectors and industry groups.
Chapter 16: Building a Trading System
Steps to coordinate indicators, money management, and creating a personal trading plan.
Chapter 17: The Technical Checklist
A summary framework for combining all previous tools into a cohesive analysis.
(Note: In some expanded references or the "Study Guide," the following advanced topics are treated as additional chapters):
Chapter 18 (Advanced): Demand Index & Herrick Payoff Index
Specialized indicators for measuring buying/selling pressure.
Chapter 19 (Advanced): Market Profile
Introduction to time-price opportunity charts and market structure analysis.