Technical Analysis of Stock Trends

Most of the information presented in this book comes from the old classic 1948 version from the original authors John Magee and Robert D Edwards. Technical Analysis of Stock Trends You get more "bang for your buck" if you buy the used (Revised) 5th edition and still have some money left in your pocket.I remember paying just $12.50 for 4th edition in the early 60's. I don't think the supplements(upgrade) to the text to bring in modern stocks is worth the extra bucks. Why spend the extra bucks and get hoodwinked? Charts are always open to interpretation but a master trader who trades everyday can eyeball charts and interpreted them a lot better. Haven't you noticed in everyday life the most skillful people who have the most knowledge come from family generations who did the same business.You need to work at it to be just as skillful in any business since making profits in a stockmarket does not come easy at first.What you see is the same type of stock patterns that your Grandpa would have seen if he traded stocks. These price patterns are like road signs you should be able to visualize them on any chart regardless what time-frame. Not knowing stock patterns when they are completed is like driving through stop signs. After you have read this book you should be very skillful in drawing trend lines,channel lines, and identifying trends on any chart. Even today using a newer stock symbol you see the same old basic chart patterns occur as the old fashioned charts a century ago. No oscillators or momentum-based indicators are needed on your chart. Experience is your best teacher when you look at chart patterns and there are many more to identify that you discover on your own. In the market you must look at what is happening now then predict what is going to happen, not what has already happened to make money. The market always looks through the front windshield not through the rear view mirror like the news media, just after the fact.

Originally published in 1948, this book is absolutely one of the greats on technical analysis (i.e., using price action, volume and time). The authors claim that all a trader really needs to know is found in the charts. Fundamentals can be tossed aside. You just need to know how to interpret what the chart is saying and then act by taking a position.But does this approach work? This will depend on the individual. For example, you and I can trade the same stock for 3 years applying technical analysis but the end result can very well be that one of us ends up with a big profit and the other a big loss. The reason is due to the following factors: which patterns to take, the spot where you get in, how far to let a position move against you, and where to take a profit. As you can see, technical analysis is somewhat subjective.You probably know that there are no guarantees in the trading game. And chart formations are NOT infallible. All the stuff taught in this book will short circuit at one time or another causing a loss. You could even fall into a losing streak. Thankfully, the authors give fair warning about the dangers involved. But despite the unpleasant prospects, this book remains one of the very best places to learn the theory of technical analysis of charts. I recommend going with the 4th or 5th edition, that is all you really need to capture the essence of the material, plus, you'll save yourself a few bucks.

Requires real diligence from the reader.

Unless you're a price action nerd, this book's probably not for you.

Great Book. I learned to hand chart over 40 yrears ago using this book as a reference. Teaches technical analysis to traders. This is my 3rd copy (I loan it out too much). At the age of 78 I still enjoy reviewing the subject matter!

I've read quite a significant amount of trading books, but this one beats the rest by far. It was written in layman's terms with practical applications. A real treasure trove.

The book is a reprint of a much older book. Since the original book was written there have been a number of significant advances in computing power and software and this book is very much dated.

very informative

The bible.

Nice book, long reading though. Excellent and useful source of information helping to better understand the psychology of the markets.