11th Edition

Technical Analysis of Stock Trends

ISBN 9781138069411
Published July 19, 2018 by CRC Press
685 Pages 355 B/W Illustrations

USD $105.00

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Book Description

Technical Analysis of Stock Trends helps investors make smart, profitable trading decisions by providing proven long- and short-term stock trend analysis.

It gets right to the heart of effective technical trading concepts, explaining technical theory such as The Dow Theory, reversal patterns, consolidation formations, trends and channels, technical analysis of commodity charts, and advances in investment technology. It also includes a comprehensive guide to trading tactics from long and short goals, stock selection, charting, low and high risk, trend recognition tools, balancing and diversifying the stock portfolio, application of capital, and risk management.

This updated new edition includes patterns and modifiable charts that are tighter and more illustrative. Expanded material is also included on Pragmatic Portfolio Theory as a more elegant alternative to Modern Portfolio Theory; and a newer, simpler, and more powerful alternative to Dow Theory is presented.

This book is the perfect introduction, giving you the knowledge and wisdom to craft long-term success.

Table of Contents

Part I: Technical theory

1. The technical approach to trading and investing

2. Charts

3. The Dow Theory

4. The Dow Theory’s defects

5. Replacing Dow Theory with John Magee’s Basing points Procedure

6. Important Reversal Patterns

7. Important Reversal Patterns: continued

8. Important Reversal Patterns: the Triangles

9. More important Reversal Patterns

10. Other Reversal phenomena

11. Consolidation Formations

12. Gaps

13. Support and Resistance

14. Trendlines and Channels

15. Major Trendlines

16. Technical analysis of commodity charts

17. A summary and concluding comments

Part II: Trading tactics

18. The tactical problem

19. The all-important details

20. The kind of stocks we want: the speculator’s viewpoint

21. Selection of stocks to chart

22. Selection of stocks to chart: continued

23. Choosing and managing high-risk stocks: tulip stocks, Internet sector, and speculative frenzies

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 and 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. Portfolio risk management

43. Stick to your guns

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WHC Bassetti is the Editor and Coauthor of the classic reference, Technical Analysis of Stock Trends, 10th Edition, first written by Robert D. Edwards and John Magee in 1948. Mr. Bassetti traded as a student and client of John Magee in the 1960s, beginning a long, distinguished trading career encompassing virtually all of the financial markets, stocks, bonds, options and futures.

In 1972, as a Principal and Vice President of California’s first licensed commodity trading advisor he pioneered computerized trading systems and traded professionally for individual and institutional clients. His company was one of the first to manage capital for Merrill Lynch, Dean Witter et al and he and his partners created and managed some of the first commodity mutual funds.

In 1984 he was appointed CEO of Options Research Inc., a company founded by Blair Hull of Chicago’s Hull Trading Company, formerly the largest market maker on the floor of the CBOE. ORI was one of the first if not the first, companies to computerize the analysis of options and futures. Clients for analytical and portfolio services included Morgan Stanley, First Boston, and Kidder Peabody et al. Mr. Bassetti’s organization managed options arbitrage capital compiling a brilliant record during the market crash of 1987, and traded as a market maker with a seat on the Pacific Stock Exchange.

A graduate of Harvard University and a former NASA systems engineer, Mr. Bassetti is currently Distinguished Adjunct Professor of Finance and Economics at Golden Gate University, San Francisco, Editor of the John Magee Investment Series for St. Lucie Press and a practicing technical analyst.

In spite of his decades of work in computerized trading systems, Mr. Bassetti’s favorite analytical tool remains a ruler, a tool he teaches graduate students and the general public in his monthly 2-1/2 day seminars at Golden Gate University.