The Visual Investor, How to Spot Market Trends breaks down technical analysis into terms that are accessible to even individual investors. Murphy covers all the fundamentals, from chart types and market indicators to sector analysis and global investing, providing examples and easy-to-read charts so that any reader can become a skilled visual investor.
Traders and investors have been using a visual approach to investing for over a century. Up until the past decade, the use of visual analysis as a serious method of trading and investing was pretty much limited to professionals and full-time traders. Most successful traders would never think of making a trade without first consulting the pictures on their charts. Even the Federal Reserve Board now uses price charts.
The book is divided into four sections. Section One explains what visual analysis is and how it can be blended with more traditional forms of investment analysis. Section Two covers some of the more popular market indicators in use today. We stress the concepts behind the various indicators and how they are interpreted.
Section Three introduces the idea of market linkages. This is especially important in order to appreciate why stock market investors should also monitor movements in commodity prices, bond prices, and the dollar. Intermarket analysis is also helpful in understanding asset allocation and the process of sector rotation within the stock market. Section Four focuses on sector analysis. Relative strength analysis is shown to play an important role in the selection process. We also show you how to analyze the global markets.
- What Is Visual Investing?
- The Trend Is Your Friend
- Pictures That Tell a Story
- Your Best Friend in a Trend
- Is It Overbought or Oversold?
- How to Have the Best of Both Worlds
- Market Linkage
- Market Breadth
- Relative Strength and Rotation
- Exchange-Traded Funds
- Sectors and Industry Groups
- Mutual Funds
The Visual Investor: How to Spot Market Trends By John J. Murphy pdf