Title:
Technical analysis of stock trends
Author:
Edwards, Robert D. (Robert Davis), 1893-
ISBN:
9781439898185
Personal Author:
Edition:
10th ed.
Publication Information:
Boca Raton : Taylor & Francis, c2013.
Physical Description:
xlvi, 578 p. : ill. ; 27 cm.
General Note:
Previous ed.: 2007.
Formerly CIP.
Contents:
Machine generated contents note: Section I Technical theory -- ch. 1 The technical approach to trading and investing -- Definition of technical analysis -- ch. 2 Charts -- Different types of scales -- ch. 3 The Dow Theory -- The Dow Averages -- Basic tenets -- Tide, wave, and ripple -- Major trend phases -- Principle of confirmation -- ch. 4 The Dow Theory's defects -- The Dow Theory is too late -- The Dow Theory is not infallible -- The Dow Theory frequently leaves the investor in doubt -- The Dow Theory does not help the Intermediate Trend investor -- The Dow Theory in the 20th and 21st centuries -- ch. 5 Replacing Dow Theory with John Magee's Basing Points Procedure -- The fractal nature of the market -- ch. 6 Important Reversal Patterns -- Important Reversal Patterns -- Time required to reverse a trend -- The Head and Shoulders -- Volume is important -- Breaking the neckline -- Variations in Head-and-Shoulders Tops --
Contents note continued: Price action following confirmation: the measuring formula -- Relation of Head and Shoulders to Dow Theory -- ch. 7 Important Reversal Patterns: continued -- Head-and-Shoulders (EN: or Kilroy) Bottoms -- Multiple Head-and-Shoulders Patterns -- Tendency to symmetry -- A leisurely pattern -- Rounding Tops and Bottoms -- How Rounding Turns affect trading activity -- The Dormant Bottom variation -- Volume pattern at Tops -- ch. 8 Important Reversal Patterns: the Triangles -- Symmetrical Triangles -- Some cautions about Symmetrical Triangles -- How prices break out of a Symmetrical Triangle -- A typical Triangle development -- Reversal or Consolidation -- The Right-Angle Triangles -- A planned distribution -- Descending Triangles -- Volume characteristics same as the Symmetrical type -- Measuring implications of Triangles -- Triangles on weekly and monthly charts -- Other Triangular formations -- ch. 9 Important Reversal Patterns: continued --
Contents note continued: The Rectangles, Double and Triple Tops -- Pool operations -- Relation of rectangle to Dow Line -- Rectangles from Right-Angle Triangles -- Double and Triple Tops and Bottoms -- Distinguishing characteristics -- Double Bottoms -- Triple Tops and Bottoms -- ch. 10 Other Reversal phenomena -- The Broadening Formations -- Volume during Broadening Formations -- A typical example -- The Orthodox Broadening Top -- Why no Broadening Bottoms? -- Right-Angled Broadening Formations -- The Diamond -- Wedge Formations -- The Falling Wedge -- Wedges on weekly and monthly charts -- Rising Wedges common in Bear Market Rallies -- The One-Day Reversal -- The Selling Climax -- Short-term phenomena of potential importance -- Spikes -- Runaway Days -- Key Reversal Days -- ch. 11 Consolidation Formations -- Flags and Pennants -- The Pennant: a pointed Flag -- The measuring formula -- Reliability of Flags and Pennants -- Where they may be expected --
Contents note continued: Flag pictures on weekly and monthly charts -- Rectangular Consolidations: an early phase phenomenon -- Head-and-Shoulders Consolidations -- Scallops: repeated Saucers -- Modern versus old-style markets -- ch. 12 Gaps -- Which gaps are significant? -- Closing the gap -- Ex-dividend gaps -- The common or area gap -- Breakaway gaps -- Continuation or runaway gaps and the measuring rule -- Two or more runaway gaps -- Exhaustion gaps -- The Island Reversal -- Gaps in the Averages -- ch. 13 Support and Resistance -- Normal trend development -- The explanation -- Estimating Support-Resistance potential -- Locating precise levels -- Significance of Support failure -- Popular misconceptions -- The round figures -- Repeating historical levels -- Pattern Resistance -- Volume on breaks through Support -- Support and Resistance in the Averages -- ch. 14 Trendlines and Channels -- The Trendline -- How Trendlines are drawn -- Arithmetic versus logarithmic scale --
Contents note continued: Tests of authority -- Validity of penetration -- Amendment of Trendlines -- Double Trendlines and trend ranges -- Trend Channels -- Experimental Lines -- Consequences of Trendline penetration: Throwbacks -- Intermediate Downtrends -- Corrective trends: the Fan Principle -- ch. 15 Major Trendlines -- Major Downtrends -- Major Trend Channels -- Trendlines in the Averages -- Trading the Averages in the 21st century -- ch. 16 Technical analysis of commodity charts -- Technical analysis of commodity charts, part 2: A 21st-century perspective -- Rocket scientists -- Turtles? -- The application of Edwards and Magee's methods to 21st-century futures markets -- Stops -- A variety of methods -- Everything you need to know as a chart analyst trading futures -- The return of the great markets of the 1970s -- ch. 17 A summary and concluding comments --
Contents note continued: Technical analysis and technology in the 21st century: the computer and the Internet: tools of the investment/information revolution -- The importance of computer technology -- Summary 1 -- Other technological developments of importance to the technical Magee analyst and all investors -- The Internet: the eighth wonder of the modern world (EN9: Appendix B, Resources, for the ninth edition has been enormously expanded and is of paramount importance to modern investors) -- Marking-to-market -- Separating the wheat from the chaff -- Chaff -- Summary 2 -- Advancements in investment technology, part 1: Developments in finance theory and practice -- Options -- Quantitative analysis -- Options pricing models and their importance -- Futures on indexes -- Options on futures and indexes -- Modern Portfolio Theory -- The wonders and joys of investment technology --
Contents note continued: Advancements in investment technology, part 2: futures and options on futures on the Dow-Jones Industrial Index at the CBOT -- Investment and hedging strategies using the CBOT® DJIASM futures contract -- Settlement of futures contracts -- Marking-to-market -- Fungibility -- Differences between cash and futures -- Dow Index futures -- Using stock index futures to control exposure to the market -- Investment uses of Dow Index futures -- Situation 1 Portfolio protection -- Situation 2 Increasing exposure with futures -- Situation 3 Using bond and index futures for asset allocation -- Perspective -- Options on Dow Index futures -- Option premiums -- Volatility -- Exercising the option -- Using futures options to participate in market movements -- Profits in rising markets -- Exploiting market reversals -- Using puts to protect profits in an appreciated portfolio -- Situation 1 -- Improving portfolio yields -- Situation 2 --
Contents note continued: Using option spreads in high- or low-volatility markets -- Situation 3 -- Situation 4 -- Perspective -- Recommended further study -- Section II Trading tactics -- Midword -- ch. 18 The tactical problem -- Strategy and tactics for the long-term investor. What's a speculator, what's an investor? -- One definition of the long-term investor -- The strategy of the long-term investor -- Rhythmic investing -- Summary -- ch. 19 The all-important details -- The simplest and most direct way to use a computer for charting analysis -- Summary -- ch. 20 The kind of stocks we want: the speculator's viewpoint -- The kind of stocks we want: the long-term investor's viewpoint -- Changing opinions about conservative investing -- The kinds of stocks long-term investors want: The long-term investor's viewpoint -- Construction of the Index Shares and similar instruments -- An outline of instruments available for trading and investing --
Contents note continued: The importance of these instruments: diversification, dampened risks, tax, and most important, technical regularity -- Summary -- ch. 21 Selection of stocks to chart -- ch. 22 Selection of stocks to chart: continued -- ch. 23 Choosing and managing high-risk stocks: tulip stocks, Internet sector, and speculative frenzies -- Managing tulipomanias and Internet frenzies -- Detailed techniques for management of the runaway issues -- Hope springs eternal and there is one born every second -- ch. 24 The probable moves of your stocks -- ch. 25 Two touchy questions -- The use of margin -- Short selling -- ch. 26 Round lots or odd lots? -- ch. 27 Stop orders -- The progressive stop -- Stop systems and methods -- A brief survey of stop methods -- Some other stop methods -- Average True Range -- Parabolic stop and reverse -- Target stops -- A natural method used by the Turtles -- ch. 28 What is a bottom, what is a top? -- Basing Points --
Contents note continued: Basing Points: a case analyzed -- The Basing Points paradigm -- Key to Figure 28.2 analysis -- A narrative of the events in the chart -- The complete Basing Points Procedure: taking into consideration the setting of Basing Points on both wave lows and new highs -- The complete Basing Points procedure -- Two charts giving a long-view perspective on the complete (Variant 2) procedure -- The representative case fully analyzed using wave lows and new highs -- A narrative of the events in the chart -- ch. 29 Trendlines in action -- Buying stock, "going long" -- Liquidating, or selling a long position -- Selling stock short -- Covering short sales -- Additional suggestions -- General outline of policy for trading in the Major Trend -- ch. 30 Use of Support and Resistance -- ch. 31 Not all in one basket -- EN: diversification and costs -- ch. 32 Measuring implications in technical chart patterns -- ch. 33 Tactical review of chart action -- The Dow Theory --
Contents note continued: Head-and-Shoulders Top -- Head-and-Shoulders Bottom -- Complex or multiple Head-and-Shoulders -- Rounding Tops and Bottoms -- Symmetrical Triangles -- Right-Angle Triangles -- Broadening Tops -- Rectangles -- Double Tops and Bottoms -- Right-Angled Broadening Formations -- The Diamond -- Wedges -- One-Day Reversals -- Flags and Pennants -- Gaps -- Support and Resistance -- Trendlines -- ch. 34 A quick summation of tactical methods -- Get out of present commitments -- Make new commitments -- ch. 35 Effect of technical trading on market action -- ch. 36 Automated trendline: The Moving Average -- Sensitizing Moving Averages -- Crossovers and penetrations -- The PENTAD Moving Average system from Formula Research -- ch. 37 The same old patterns -- Not all the same -- ch. 38 Balanced and diversified -- September 28, 1985: an oversold market -- ch. 39 Trial and error -- ch. 40 How much capital to use in trading -- ch. 41 Application of capital in practice --
Contents note continued: Put and call options -- ch. 42 Portfolio risk management -- Overtrading: and a paradox -- Risk of a single stock -- Risk of a portfolio -- EN9: Risk and trend -- Value-at-Risk Procedure -- Pragmatic Portfolio Theory (and practice) -- Pragmatic portfolio risk measurement -- Determining the risk of one stock -- Determining the risk for a portfolio -- Measuring maximum drawdown, or maximum retracement -- Pragmatic portfolio analysis: measuring the risk -- Portfolio Ordinary or Operational Risk -- Portfolio risk over time -- Portfolio extraordinary or catastrophic risk -- Controlling the Risk -- Summary of Risk and Money Management Procedures -- Infinitely more sophisticated risk and money management procedures---Ralph Vince and optimal f -- ch. 43 Stick to your guns -- Appendix A The Dow Theory in practice -- Five years of Dow interpretation -- The first severe test -- Failure to confirm -- Signs of Major Turn -- The Bull signal -- The first correction --
Contents note continued: Bull Trend reaffirmed -- The Rails falter -- The spring of 1946 -- Final Up-Thrust -- The Bear Market signal -- Appendix B Resources -- Section 1 important and indispensable sites -- Section 2 references for further study -- On risk -- On candlesticks -- On futures -- On portfolio management -- Section 3 investment-oriented sites -- Brokerage Houses -- Section 4 the Sharpe Ratio -- Section 5 calculating volatility -- Section 6 the essence of fundamental analysis -- The Elliott Wave Theory: perspective and comments -- Section 7 software packages and Internet technical analysis sites -- Aiq: Trading Expert Pro -- Metastock 9.0 -- Tradestation 2000i and Tradestation 8 -- The Internet: prophet (http://www.thinkorswim.com) -- The Internet: http://www.stockcharts.com -- A brief summary -- Section 8 the Leverage Space Portfolio Model.