The first half of the book is devoted to charting methods, which he characterizes as both reliable and _subjective._ Excuse me, but how can a technique be deemed reliable if two practitioners cannot agree on what the data mean? This section is heavy on claims, but lacking any solid evidence.
Fortunately, the book isn't a total waste. There is an extensive review of more reliable and quantitative techniques, such as moving averages, oscillators, Boillinger Bands, etc. This part is probably the most useful portion of the book. Of further interest is the use of TA for intermarket analysis, developing trading systems, and the method of Japanese Candlestick charting, which might have something of value.
A good rebuttal to the exaggerated claims of TA is _Stock Market Logic_ by Norman Fosback, who has developed some powerful trading systems of his own.
If you are already a convert to TA, you will love this book. If you are a skeptic, nothing in this text will change your mind. My advice: absorb what is useful, reject what is useless, and (most importantly) add something specifically your own. (Thank You Bruce Lee!)
In the past 2 decades, many on Wall Street have come to believe that technical analysis of stock charts is one of those tools. Having worked in the financial services markets since 1987, I do believe that technical analysis can be a helpful tool. And if you are looking for a definitive source of TA, then look no further.
Technical Analysis of the Financial Markets by John Murphy covers all the basic aspects of TA: philosophy, chart construction, fundamental vs. technical analysis, trends, major technical pattern recognition, moving averages, oscillators, times cycles, computer trading systems and much more. He also covers different methods of charting, including bar, point and figure and candlestick (be aware that most of the analysis techniques he presents apply to bar charting, not PnF or candlestick).
What I like most about the book is that it written clearly, simply and logically. It uses many graphical examples that SHOWS the reader what to look for. It does not rage on about the merits of TA (which many investors feel is complete hooey) but how to apply basic (and sophisticated) TA techniques. I use TA frequently in my business and find that it helps me manage my client's portfolios more effectively, especially when it comes to SELLING a position, whether to lock-in gains or limit losses.
If you are a TA convert, or if you have an interest in learning more about it, this book is a useful guide and should be purchased. Today, it remains one of the few investment reference books that I keep in my office.