Technical Analysis of Futures Markets. Murphy, John J.

Many traders who began their careers in the forex market later switched to futures trading.

Most exchange traders believe this market is much easier to predict, and therefore easier to profit from.

Unfortunately, most information describing various trading methods focuses on forex or stock exchanges.

Finding recommendations for futures trading is quite difficult, but John Murphy's book, Technical Analysis of Futures Markets, can help.

The author has long been known to a wide audience for his work on exchange trading, and among investors as the manager of the hedge fund MurphyMorris Money Management Corp.

You've already read another of his books, The Virtual Investor .

Traditionally, here's a brief summary of what this book is about:

1. Philosophy of technical analysis – what is the methodology of technical analysis, comparison of its application in different types of markets.

2. Dow Theory - the essence of the theory, its practical applications and critical comments that should be taken into account.

3. Chart construction – what types of charts are available, how to create one yourself, the pros and cons of ready-made and self-created charts.

4. Trend – the trend as seen by the author of the book, main directions, support and resistance lines, calculation of the correction size.

5. Basic reversal patterns – this section will discuss the use of reversal patterns in futures trading.

6. Trend continuation patterns – which of the graphical figures on the chart indicate a continuation of the existing trend.

7. Volume and Open Interest – the importance of trading volumes and how they help predict trends.

8. Long-term charts and indices of commodity markets – why it is necessary to conduct long-term trend analysis and how to conduct it.

9. Moving average – principles of constructing moving averages and what data they are calculated on.

10. Oscillators and the reverse method – how such price forecasting tools work, ways to effectively use oscillators in stock trading.

11. Chapters 11-14 continue to describe the various methods of technical analysis that are used to study the market.

12. Computers and trading systems are the main tools used in trend analysis, the use of mechanical trading systems.

13. Capital management and trading tactics - what principles should be followed when planning transaction risks.

14. Additional information – helping to clarify certain issues.

This book is often called a classic of technical analysis and is arguably one of the best textbooks on the topic. It will be useful when trading any financial or commodity market.

You can download the book from one of the online stores