TABLE OF CONTENTS
Editor's Introduction
Preface to First Edition
Chapter I GRAPHS: WHAT ARE
THEY?
Value of Graphs in
Speculation • Price Controlled by Universal Laws • Science of Price • My
Development in Graph Reading - Logical Reason for Actions • Mob Psychology • The Human
Equation • Comparison of Grain and Stock Prices - Speculation a Profession
Chapter II HOW TO MAKE SIMPLE
GRAPHS
Geometrical Graph Paper •
Ratio Graph Paper • The Four Essentials in Graph Making • Complete Daily Movements
-The Movement of Two Days or More: Angle or Block Graph • Closing Graph - Primary,
Secondary, Minor Trends • Combination Graph - Figure Chart
Chapter III DAILY FACTORS
AND INDICATIONS
Daily Range Indication Inside
Days • Outside Days • Neutral Days • Up-turn and Down-turn Days • Hook
Closings • Double Hook • Time and Cycles
Chapter IV INTERMEDIATE
FORMATIONS AND MOVEMENTS
Recurrence • Runs •
Reverses of Movement of Two Days or More • Reverses of Futures • Trends • Objectives
• Mechanical Formula for Figuring Objectives • Congestions • Thin Spots • Gaps.
Averages • Daily Average Movement of Two Days or More Average Average Over All • Major
Straight Average • Triple Average • Trend Triple Average • Major Combination Average
• Resistance Levels • Reactions
Chapter V TOP AND BOTTOM
FORMATIONS
Head and Shoulder Top and
Bottom • Trading on the Head and Shoulder Irrespective of Other Factors • Broadening
Tops and Bottoms • The Double Spread -Declining Top and Inclining Bottom - Coiling Top
and Bottom • Compound Tops and Bottoms • Seasonal Tops and Bottoms • Seasonal Tops
and Bottoms, One Commodity • Seasonal Tops and Bottoms, Several Commodities
Chapter VI DAILY
ANALYSIS OF THE MARKET
Positions • Trends •
Averages • Movements • Distances Unfinished and Distances Finished • Runs Unfinished
and Runs Finished • Cycles • Top and Bottom Day of The Week • Daily Action and
Closings • Closings • Recapitulation • The Bull and Bear Bulletin
Chapter VII MECHANICAL RULES
Scalping Rules • Unit •
Stop Loss and Stop Profit • Stop Profit Plan • Averaging and Doubling .
Scalping Against the Trend • Going With the Trend - Year Around Trading Plan
Chapter VIII GENERAL
INFORMATION IN TRADING
Await Definite Indication
• Stop Loss Orders - Trading When in Congestion • Going With the Market
in Trading
Chapter IX LONG PULL TRADING
Study and Application •
Sufficient Capital • Patience • When to Enter the Market for Long Pull Trading
• General Condition of the Market • Interpretation as per Market Graphs
Chapter X THE ALL
PRICE CURVE
Normal Value of Wheat •
Supply and Demand • Export Surplus or Deficit • Domestic Surplus or
Deficit • Relative Action of Grain and Commodity Prices • How to Plot Curves in
Figures X.I and X.2
Chapter XI GREGORY KING'S LAW
OF PRICES
Feudal System of Land Tenure
• Attempted Price Control for 500 Years ' Bounty on Exports Failed • Duties
Based on Sliding Scale Failed • Price Control Failed After 500 Years' Trial •
King's Study and Analysis
Chapter XII FINDING THE MAJOR
OBJECTIVE
Establishing the Primary
Movement- Establishing the Secondary Trend • Calculating the Objectives Objectives
Conjectural
Chapter XIII APPLYING THE DOW
THEORY TO GRAIN
Similarity Manipulation •
The Averages Discount Everything • The Theory is Not Infallible Dow's Three
Movements • Primary Movements • Primary Bear Markets • Primary Bull Markets •
Secondary Reactions • Daily Fluctuations • Both Averages Must Confirm • Determining
the Trend • Lines • The Relation of Volume to Price Movements • Double Tops and
Double Bottoms • William Peter Hamilton, Market Analyst • Action of Wheat and Corn
Should Conform • Graphs for Applying The Dow Theory
Chapter XIV HEDGING
Three Purposes in Hedging
- Hedging Eliminates Speculation • Hedging Protects Profits - The Origin of
Future Trading Contracts - How a Hedge Operates • Hedge Not a Speculation
Chapter XV PRIVILEGES
Explanation of How Privileges
Are Exercised - Privileges, or Bids and Offers, are of
Value • Bids and Offers as
an Outright Speculation • Trading Against Privileges • Selling Privileges •
Privileges as a Positive Stop Loss • Selling Bids • Selling Offers -Experienced
Speculators Seldom Buy 1'riviieges • Privileges as Insurance or Hedge on Cash Grain
Transactions • Privileges Used as a Protection - Conclusion
THE TRADERS' MASTERCLASS
SERIES
Great investment advice is a
rare and timeless commodity. The Traders' Masterclass series brings to the market a set of
classic texts from the "golden age" of technical analysis - timeless trading
wisdom, laying the foundations on which a growing body of investment literature has been
built.
These original works from the
pioneers of technical analysis contain uniquely insightful lessons, winning formulae and
trading tactics that can be put to use in any market, at any time. Generations of
investors may come and go, but the nature of speculation remains the same. For investors
and market-students alike, these masters represent the original formulae for trading
success.
Some of these works
originally took the form of correspondence courses, and have never previously been
published as books, while others have existed only as rare manuscripts, available only to
a handful of traders with the determination to track them down-Over a twenty-year period,
an experienced US trader and renowned investment book expert, Donald Mack, selected and
tracked these classics down so that modern investors might benefit from their advice. Each
book in the Traders' Masterclass series has been introduced and annotated to aid their
application in today's markets. To the trading community these manuscripts will be rare
and valuable sources of wisdom.
290 pages