Technical Analysis of Stock Trends

Sixty-three years. Sixty-three years and Technical Analysis of Stock Trends still towers over the discipline of technical analysis like a mighty redwood. Originally published in 1948 and now in its Tenth Edition, this book remains the original and most important work on this topic. The book contains more than dry chart patterns, it passes down accumulated experience and wisdom from Dow to Schabacker, to Edwards, and to Magee, and has been modernized by W.H.C. Bassetti. Bassetti, a client, friend, and student of John Magee, one of the original authors, has converted the material on the craft of manual charting with TEKNIPLAT chart paper to modern computer software methods. In actuality, none of Magee’s concepts have proven invalid and some of his work predated modern concepts such as beta and volatility. In addition, Magee described a trend-following procedure that is so simple and so elegant that Bassetti has adapted it to enable the general investor to use it to replace the cranky Dow Theory. This procedure, called the Basing Points procedure, is extensively described in the new Tenth Edition along with new material on powerful moving average systems and Leverage Space Portfolio Model generously contributed by the formidable analyst, Ralph Vince., author of Handbook of Portfolio Mathematics. See what’s new in the Tenth Edition: Chapters on replacing Dow Theory Update of Dow Theory Record Deletion of extraneous material on manual charting New chapters on Stops and Basing Points New material on moving average systems New material on Ralph Vince’s Leverage Space Portfolio Model So much has changed since the first edition, yet so much has remained the same. Everyone wants to know how to play the game. The foundational work of the discipline of technical analysis, this book gives you more than a technical formula for trading and investing, it gives you the knowledge and wisdom to craft long-term success.

Table of Contents:
TECHNICAL THEORY The Technical Approach to Trading and Investing Charts The Dow Theory The Dow Theory in Practice The Dow Theory’s Defects The Dow Theory in the 20th and 21st Centuries Important Reversal Patterns Important Reversal Patterns–Continued Important Reversal Patterns–The Triangles Important Reversal Patterns–Continued Other Reversal Phenomena Short-Term Phenomena of Potential Importance Consolidation Formations Gaps Support and Resistance Trendlines and Channels Major Trendlines Trading the Averages in the 21st Century Technical Analysis of Commodity Charts Technical Analysis of Commodity Charts, Part 2 A Summary and Some Concluding Comments Technical Analysis and Technology in the 21st Century: The Computer and the Internet, Tools of the Investment/ Information Revolution Advancements in Investment Technology TRADING TACTICS MIDWORD The Tactical Problem Strategy and Tactics for the Long-Term Investor The All-Important Details The Kind of Stocks We Want–The Speculator’s Viewpoint The Kind of Stocks We Want–The Long-Term Investor’s Viewpoint Selection of Stocks to Chart Selection of Stocks to Chart–Continued Choosing and Managing High-Risk Stocks: Tulip Stocks, Internet Sector, and Speculative Frenzies The Probable Moves of Your Stocks Two Touchy Questions Round Lots or Odd Lots? Stop Orders What Is a Bottom–What’s Is a Top? Trendlines in Action Use of Support and Resistance Not All in One Basket Measuring Implications in Technical Chart Patterns Tactical Review of Chart Action A Quick Summation of Tactical Methods Effect of Technical Trading on Market Action Automated Trendline: The Moving Average “The Same Old Patterns” Balanced and Diversified Trial and Error How Much Capital to Use in Trading Application of Capital in Practice Portfolio Risk Management Stick to Your Guns APPENDICES GLOSSARY BIBLIOGRAPHY INDEX