Technical Analysis of Stock Trends

“Technical Analysis of Stock Trends” by Robert D. Edwards and John Magee is the timeless cornerstone of chart-based analysis — a definitive resource that shaped modern technical trading. Originally published in 1948, it remains one of the most respected, cited, and studied works in the history of market analysis.

This classic work introduced and codified many of the charting techniques still in use today, such as:

• Support and resistance
• Reversal patterns like head and shoulders, double tops/bottoms
• Continuation patterns like triangles and rectangles
• Volume analysis and its role in confirming trends
• Dow Theory and trend structure principles

While newer books introduce flashy indicators and systems, Edwards & Magee emphasize logic, pattern psychology, and market behavior that stand the test of time. The book presents a systematic approach to interpreting price movements and forecasting trend reversals using pure chart analysis.

Every serious trader, investor, and technical analyst has either read or been influenced by this monumental work. It’s not just a textbook — it’s a rite of passage.

✅ What You’ll Learn:

• The foundational logic of price action and market trends
• Classic chart patterns and how to trade them
• The role of volume in trend confirmation
• Key principles of support, resistance, and breakout behavior
• How to identify accumulation/distribution and reversal zones
• Market psychology and behavioral patterns behind price structure

💡 Key Benefits:

• Provides deep foundational knowledge for any technical trader
• Still relevant after 75+ years due to its focus on timeless principles
• Teaches you how to read and think in charts, not just memorize patterns
• Equips traders with discipline and structure in market analysis
• A historical and educational gem for students of technical markets

👤 Who This Book Is For:

• Beginner to intermediate traders seeking core charting mastery
• Advanced technical analysts who want to return to the fundamentals
• Investors who want to understand the real basis of trend-following
• Students of Dow Theory, price action, and classic pattern behavior
• Anyone serious about building a disciplined, non-random market approach

📚 Table of Contents:

1. Introduction to Technical Analysis and Dow Theory
2. The Technical Approach to Trading
3. Trendlines and Trend Reversals
4. The Theory of Volume and Its Application
5. Chart Patterns: Head and Shoulders, Triangles, Flags, etc.
6. Support and Resistance in Practice
7. Continuation Patterns and Their Signals
8. Investment versus Speculation
9. Building a Trading Plan Using Chart Logic
10. Risk Control and Trade Management
11. Practical Examples from Historic Charts
12. Summary and Evolution of Chart-Based Strategy