Technical Analysis of Stock Trends, Tenth Edition
CRC Press – 2013 – 624 pages
Sixty-three years. Sixty-three years and Technical Analysis of Stock Trendsstill 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:
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.
"The 9th edition also contains some ‘jewels’ developed from Magee’s work, Basing Point analysis and risk management, as well as additional material demonstrating the power of chart analysis in commodity trading. … I am pleased to recommend this edition to new readers and old readers alike."
—John Murphy, author of Technical Analysis of the Financial Markets and Intermarket Analysis
"With a focus on pragmatic portfolio theory, editor Charles Bassetti significantly contributes to the technical analysis body of knowledge especially related to tactics, and has created a book worth a space on every technician’s bookshelf."
—Mike Carr, CMT in Technically Speaking, Market Technician’s Association
"… teaches us how to profit from chart patterns regardless of what the market is doing. This classic book on chart patterns is a must for the savvy trader."—David Robinson, The Bull and Bear Financial Report
"Whatever you might think of technical analysis in general, and charting in particular, this book is the classic work on the subject."
—Mark Hulbert, The Hulbert Financial Digest
"Completely updated with the latest information, this universally acclaimed investors' classic is the definitive reference on analyzing trends in stock performance through technical analysis."
—Yale Hirsch, Stock Traders Almanac, The Hirsch Organization, Inc.
"This book is a classic--the standard of excellence against which everything in technical analysis is measured. I am delighted to know that another generation of investors will be able to learn from this wonderful book."
—Ralph Acampora, Prudential Securities
"The #1 all-time classic on analysis of bar charts. Many knowledgeable technicians consider this to be the best book on chart patterns ever written!"
—Edward Dobson, Traders Press, Inc.
TECHNICAL THEORY: The Technical Approach to Trading and Investing. Charts. The Dow Theory. The Dow Theory’s Defects. Dow Theory and the Basing Point Procedure. Important Reversal Patterns. Important Reversal Patterns — Continued. Important Reversal Patterns — The Triangles. Important Reversal Patterns — Continued. Other Reversal Phenomena. Consolidation Formations. Gaps. Support and Resistance. Trendlines and Channels. Major Trendlines. Technical Analysis of Commodity Charts. Summary and Some Concluding Comments. TRADING TACTICS: The Tactical Problem. The All-Important Details. The Kind of Stocks We Want — The Speculator’s Viewpoint. Selection of Stocks to Chart. Selection of Stocks to Chart — Continued. Choosing and Managing High-Risk Stocks: Tulip Stocks, Internet. The Probable Moves of Your Stocks. Two Touchy Questions. Round Lots or Odd Lots? Stop Orders. What Is a Bottom — What 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. List of Illustrations and Text Diagrams. Index of Charts by Stock Name. Glossary. Bibliography. Index.
W.H.C. Bassetti is an Adjunct Professor of Finance and Economics at Golden Gate University in San Francisco, California.
Robert D. Edwards is a consultant in San Rafael, California.
John Magee is a Consultant in Chicago, Illinois.