10 Laws of Technical Trading by John Murphy

SEHJU Research Center 25 2013 13:30 .

10 John Murphy by DragonSlayer

1. Map the Trends

2. Spot the Trend and Go With It

3. Find the Low and High of It

()-
4. Know How Far to Backtrack
Pullback
5. Draw the Line

6. Follow that Average

()
7. Learn the Turns

8. Know the Warning Signs

9. Trend or Not a Trend

10. Know the Confirming Signs

10
1. Map the Trends
-

2. Spot the Trend and Go With It

- ,

dip (
)
day trade daily chart & intra-day
chart

-

3. Find the Low and High of It

-

Breakout

breakthrough

4. Know How Far to Backtrack

-

Fibonacci retracement 38.2% 61.8% 50%
2/3 38%
62% pullback 33-38% retracement area

5. Draw the Line

-
lows
highs pullback

3

6. Follow that Average

- -

49 , 918 , 520
40
indicators

7. Learn the Turns

- overbought and oversold

RSI Stochastic 0 100 RSI 70
30 Stochastic 80 20
RSI
9 14 Stochastic 14 Divergences

8. Know the Warning Signs

- MACD faster slower
faster line slower line

MACD histogram
MA 2 histogram
MA

9. Trend or Not a Trend

- ADX trending trading ADX
ADX (20) ADX
ADX(20) -
ADX MA
ADX oscillators RSI, Stochastic

10. Know the Confirming Signs

- -

-

Technical analysis is a skill that improves with experience and study. Always be a student and
keep learning.
- John Murphy
http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:john_murphy_s_ten_laws