Technical Analysis of Stock Trends

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!

Contents

Table of Illustrations

Table of Text Diagrams

Foreword

1. The Technical Approach
2. Charts
3. The Dow Theory
4. Dow Theory in Practice
5. The Dow Theory's Defects
6. Important Reversal Patterns
7. Important Reversal Patterns - Continued
8. Important Reversal Patterns - The Triangles
9. Important Reversal Patterns - Continued
10. Other Reversal Phenomena
11. Consolidation Formations
12. Gaps
13. Support and Resistance
14. Trendlines and Channels
15. Major Trendlines
16. Technical Analysis of Futures/Derivatives Charts
17. Summary and Some Concluding Comments
18. The Tactical Problem
19. The All-Important Details
20. The Kind of Stocks We Want
21. Selection of Stocks to Chart
22. Selection of Stocks to Chart - Continued
23. The Mechanics of Building a Chart
24. The Probable Moves of Your Stocks
25. Two Touchy Questions
26. Round Lots or Odd Lots?
27. Stop Orders
28. What is a Bottom - What Is a Top?
29. Trendlines in Action
30. Use of Support and Resistance
31. Not All in One Basket
32. Measuring Implications in Technical Chart Patterns
33. Tactical Review of Chart Action
34. A Quick Summation of Tactical Methods
35. Effect of Technical Trading on Market Action
36. Automated Trendline: The Moving Average
37. "The Same Old Patterns"
38. Balanced and Diversified
39. Trial and Error
40. How Much Capital to Use in Trading
41. Application of Capital in Practice
42. A Discussion of Composite Leverage
43. Stick to Your Guns

Appendix B: Supplementary Chart Examples

Appendix C: Updated Charts through 1996

Appendix D: Internet Companies: The Theme Stocks of the 1990s

Glossary