Technical Analysis of Stock Trends

Submitted by Book Library on 21 March, 2010 - 22:26

For fifty years, this universally acclaimed classic has remained the bible on technical stock analysis. Today, with over 850,000 copies sold, it's well on its way to becoming a million-copy seller. The seventh edition explains every aspect of charting from basic principles to advanced trading techniques to help investors make money regardless of what the market is doing.

Completely updated and revised, it features new charts and references, as well as chapters on derivatives options, and futures trading. Readers will discover:

  • why they should buy back a stock-even at a higher price
  • a simple way to generate "extra" profits when closing out a profitable position
  • how to determine whether a certain formation is a signal to sell
  • the relatively rare pattern that almost always signals the end of a long bull market-and much more!

What to buy, when to buy it, and when to sell it are the three basic questions facing every investor. For everyone looking to Technical Analysis of Stock Trends for the answers, you'll find no better reference than this legendary investor's guide.

Positive Review of Technical Analysis of Stock Trends

The simple indicators that TAST presents can easily be applied to intraday movements, indicators powerful enough that, with an understanding of the story behind the stock and the market environment, are all one needs to trade. Yes, it takes awhile to read this book, as any dense textbook or reference work would. It's worth every minute and penny to study this manual.

Negative Review of Technical Analysis of Stock Trends

The book is the reprint of a old edition date back 1948 with some little update up to 1963. The Amazon's Search-Inside(TM) refer to another update version of the book (9 ed.). The book's style and content is very old, the charts are hand-made and frankly speaking now it's possible to do much better and the calculation of indicators now can be exact. If you are interested to the prehistory of technical analysis a would suggest "Welles Wilder - New Concepts in Technical Trading Systems". Modern and better books are those of Achelis and Colby.

Author Biography

Robert D. Edwards advanced the original Dow Theory, developing a unified and cohesive presentation, including new and clearer styles of analysis of pattern formation, trends, and support-resistance levels. John Magee approached the stock market from an engineering point of view, building on the solid foundation laid down by Dow and Hamilton. An expert on both stock and commodity trading, he founded the well-known charting and advisory firm of John Magee Inc.

Table of Contents

  • PART 1: TECHNICAL THEORY.
    1. The technical approach to trading and investing
    2. Charts
    3. The Dow theory
    4. The Dow theory in practice
    5. The Dow theory's defects
    6. The Dow theory in the 20th and 21st centuries
    7. Important reversal patterns
    8. Important reversal patterns- continued
    9. Important reversal patterns- the triangles
    10. Other reversal phenomena
    11. Short-term phenomena of potential importance
    12. Consolidation formations
    13. Gaps
    14. Support and resistance
    15. Trendlines and channels
    16. Major trendlines
    17. Trading the averages in the 21st century
    18. Technical analysis of commodity charts
    19. Technical analysis of commodity charts
    20. A summary and some concluding comments
    21. Technical analysis and technology in the 21st century: the computer and the Internet, tools of the investment/information revolution
    22. Advancements in investment technology
  • PART 2: TRADING TACTICS.
    1. Midword
    2. The tactical problem
    3. Strategy and tactics for the long-term investor
    4. The all-important details
    5. The kind of stocks we want- the speculator's viewpoint
    6. The kind of stocks we want- the long-term investor's viewpoint
    7. Selection of stocks to chart
    8. Selection of stocks to chart- continued
    9. Choosing and managing high-risk stocks: tulip stocks, Internet sector, and speculative frenzies
    10. The probable moves of your stocks
    11. Two touchy questions
    12. Round lots or odd lots?
    13. Stop orders
    14. What is a bottom- what is a top?
    15. Basing point case analyzed, illustrated
    16. Trendlines in action
    17. Use of support and resistance
    18. Not all in one basket
    19. Measuring implications in technical chart patterns
    20. Tactical review of chart action
    21. A quick summation of tactical methods
    22. Effect of technical trading on market action
    23. Automated trendline: the moving average
    24. "The same old patterns"
    25. Balanced and diversified
    26. Trial and error
    27. How much capital to use in trading
    28. Application of capital in practice
    29. Portfolio risk management
    30. Stick to your guns
  • APPENDIX A. CHAPTERS A-D.
    1. The probable moves of your stocks (Chapter 24 from the seventh edition)
    2. A discussion of composite leverage (Chapter 42 from the seventh edition)
    3. Normal range-for-price indexes (Appendix B, fifth edition)
    4. Sensitivity indexes of stocks (Appendix C, fifth edition)
  • APPENDIX B.
  • APPENDIX C. TECHNICAL ANALYSIS OF FUTURES CHARTS (CHAPTER 16 FROM THE SEVENTH EDITION BY RICHARD MCDERMOTT)
  • APPENDIX D. RESOURCES.
  • APPENDIX E. EXAMPLE OF TRADING MANUAL: ORIGINAL TURTLE TRADING SYSTEMS AND PROCEDURES.

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