Re: Edwards & Magee Book

Bojan, thank you for a detailed explanation.

I did notice that the chart style they use in the book is different
from what is widely accepted today - they disregard the opening price.
I personally prefer candlesticks, which is much more informative visually.
I managed to read past the Dow Theory, which is very convincing,
especially after very sharply defined Bull and Bear market of recent years. 
I couldn't yet decide based on their approach if the current advance
qualifies as a Bull or as a secondary wave in a Bear.

I guess the court is still out on this one. What do you think ?

What confuses me a bit in their description of Dow theory is the need
to go back and redefine previous market moves and label them differently
based on the future development. - This looks a bit like a hind-site and
doesn't return the money lost on that previous move. It seems like
current advance is hanging in the balance right now and depending on the
future developments will be named a new Bull or just a secondary wave or
"recovery" in a prolong Bear market.


Al.


On Sat, 29 Nov 2003 10:10:27 +0100, Bojan Huljev wrote:

> Hi Alex,
> Market is behaving the same way as it did long time ago. In Technical
> Analysis of Stock Trends first you will learn the DOW theory and you will be
> able after that to recognize bull and bear market. Then you will meet
> classic reversal and consolidation patterns like head and shoulders,
> rounding tops and bottoms, dormant bottoms, triangles, rectangles, double
> and triple tops and bottoms, different broadening patterns. diamonds,
> wedges, flags and pennants, you will learn what gaps mean and you will
> understand resistance and support game. You will learn how to draw trend
> lines and how to measure your target price.
> Basically, you will learn a lot of things which you should know as
> technician.
> 
> In Roberts's and John's book, they are using bar chart which I would not
> recommend. I suggest you to buy in addition to Technical Analysis of Stock
> Trends a Steve Nison's book Japanese Candlestick Charting Techniques. If you
> combine classical patterns with candles you will be much more profitable.
> 
> Good Luck
> 
> Bojan Huljev