REVISED EDITION TIMING | the AE KET ee eeeREVISED EDITION wv # MARKET MAAAAAAAAAS How to Profit in Bull and Bear Markets with | Technical Analysis Curtis M. Arnold PROBUS PUBLISHING COMPANY Chicago, Illinois Cambridge, England(©1993, Weiss Research, Inc, Chapters 1-25; Curtis M. Arnold, Chapters 26-32 First published in 1986, ISBN 0-917253-37-X ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, me- chanical, photocopying, recording, or otherwise, without the prior written permission of the publisher and the copyright holder. This publication is designed to provide accurate and authoritative informa- tion in regard to the subject matter covered. It is sold with the understand- ing that the publisher is not engaged in rendering legal, accounting or other professional service. Authorization to photocopy items for internal or personal use, or the inter- nal or personal use of specific clients, is granted by PROBUS PUBLISHING COMPANY, provided that the US§7.00 per page fee is paid directly to Copyright Clearance Center, 27 Congress Street, Salem MA 01970, USA; Phone: 1-508-744-3350. For those organizations that have been granted a photocopy license by CCC, a separate system of payment has been ar- ranged. The fee code for users of the Transactional Reporting Service is: 1-55738-496-7 / 93/ $0.00 + $7.00. ISBN 1-55738-496-7 Printed in the United States of America BB Zp @ 3 67 BO 8 Table of Contents Preface Prologue PartI, How to Profit from Technical Analysis 1. Two Roads to Success in the Market 2. To Compute or Not to Compute 3. Why Technical Analysis Works Part Il, The Basics of Technical Analysis 4. Technical Analysis and Charting 5. Trends and Trendlines 6. Volume 7. Reversal Patterns 8. Consolidation Patterns 9. Gaps 10. Retracement Theory 11. Support and Resistance 12. Momentum 13. Moving Averages 14. On-Balance Volume Part Ill. Stock Market 15. “The Averages” and Dow Theory 16. Breadth of Market Indicators 17. Leadership and Quality 18. Market Sentiment Indicators 19. Monetary Indicators 20. Short-Term Market Indicators 21, Industry Groups 22. Stock Options 7 33 39 53 61 67 71 79 85 93 99 17 123 131 135 139 143