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Index
Cover
Half Title
Title Page
Copyright Page
Contents
Preface to the eleventh edition
Preface to the tenth edition
Preface to the ninth edition
Preface to the eighth edition
In memoriam
Preface to the seventh edition
Preface to the fifth edition
Preface to the fourth edition
Preface to the second edition
Foreword
Part I: Technical theory
Chapter 1: The technical approach to trading and investing
Definition of technical analysis
Chapter 2: Charts
Different types of scales
Chapter 3: The Dow Theory
The Dow Averages
Basic tenets
Tide, wave, and ripple
Major trend phases
Principle of confirmation
Chapter 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
Chapter 5: Replacing Dow Theory with John Magee’s Basing points Procedure
The fractal nature of the market
Chapter 6: Important Reversal Patterns
Important Reversal Patterns
Time required to reverse a trend
The Head-and-Shoulders Top Formation
Volume is important
Breaking the neckline
Variations in Head-and-Shoulders Tops
Price action following confirmation: the measuring formula
Relation of Head-and-Shoulders to Dow Theory
Chapter 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
Chapter 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
Chapter 9: More important Reversal Patterns
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
Chapter 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
Chapter 11: Consolidation Formations
Flags and Pennants
The Pennant: a pointed Flag
The measuring formula
Reliability of Flags and Pennants
Where they may be expected
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
Chapter 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
Chapter 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
Chapter 14: Trendlines and Channels
The Trendline
How Trendlines are drawn
Arithmetic versus logarithmic scale
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
Chapter 15: Major Trendlines
Major Downtrends
Major Trend Channels
Trendlines in the Averages
Trading the Averages in the 21st century
Chapter 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
Chapter 17: A summary and concluding comments
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
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
Using option spreads in high- or low-volatility markets
Situation 3
Situation 4
Perspective
Recommended further study
Part II: Trading tactics
Chapter 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
Chapter 19: The all-important details
The simplest and most direct way to use a computer for charting analysis
Summary
Chapter 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
The importance of these instruments: diversification, dampened risks, tax, and technical regularity
Summary
Chapter 21: Selection of stocks to chart
Chapter 22: Selection of stocks to chart: continued
Chapter 23: Choosing and managing high-risk stocks: tulip stocks, Internet sector, and speculative frenzies
Managing tulipomanias and Internet frenzies and…Bitcoin
Detailed techniques for management of the runaway issues
Hope springs eternal and there is one born every second
Chapter 24: The probable moves of your stocks
Chapter 25: Two touchy questions
The use of margin
Short selling
Chapter 26: Round lots or odd lots?
Chapter 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
Chapter 28: What is a Bottom and what is a Top?
Basing Points
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
Chapter 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
Chapter 30: Use of Support and Resistance
Chapter 31: Not all in one basket
EN: diversification and costs
Chapter 32: Measuring implications in technical chart patterns
Chapter 33: Tactical review of chart action
The Dow Theory
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
Chapter 34: A quick summation of tactical methods
Get out of present commitments
Make new commitments
Chapter 35: Effect of technical trading on market action
Chapter 36: Automated trendline: the Moving Average
Sensitizing Moving Averages
Crossovers and penetrations
The PENTAD Moving Average system from Formula Research
Chapter 37: The same old patterns
Not all the same
Chapter 38: Balanced and diversified
September 28, 1985: an oversold market
Chapter 39: Trial and error
Chapter 40: How much capital to use in trading
Chapter 41: Application of capital in practice
Put and call options
Chapter 42: Portfolio risk management
Overtrading: 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 (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
Chapter 43: Stick to your guns
Appendix A: The Dow Theory in practice
Appendix B: Resources
Appendix C: Technical Analysis: beyond Edwards & Magee
List of Illustrations and Text Diagrams
Alphabetic Index of Stock Charts
Glossary
Bibliography
Index
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