The Introduction to the Magee System of Technical Analysis. (Book Reviews)

By Masonson, Leslie N. | Futures (Cedar Falls, IA), November 2002 | Go to article overview
Save to active project

The Introduction to the Magee System of Technical Analysis. (Book Reviews)


Masonson, Leslie N., Futures (Cedar Falls, IA)


By John Magee and W.H.C. Bassetti

St. Lucie Press

New York (2002)

268 pages and a CD-ROM, $55

There are well over 200 books on technical analysis. However, only about five books have been written by John Magee, the "father of technical analysis." The seminal work, Technical Analysis of Stock Trends, was co-authored by Magee and Robert D. Edwards and first published in 1948 (now in its 8th edition). This textbook is considered the bible of technical analysis.

Although Magee died on June 17, 1987, Bassetti, a student and client of Magee, has expanded upon Magee's work by recently publishing The introduction to the Magee System of Technical Analysis. This book is a primer rather than an in-depth look at the subject, focusing on technical analysis for the beginner. Its overall goal is to provide a solid grasp of the subject matter so that the investor can effectively manage a mid- to long-term portfolio.

The book starts out with a statement of the critical principles and basics of technical analysis crafted by Magee. Then Bassetti summarizes and extracts Magee's interpretation for the reader, using current examples. Topics include support and resistance, trends and channels, flags and pennants, head and shoulders, gaps, spikes and reversals. Afterward, the book looks at when to buy and sell and how to use buy and sell stops effectively.

Other topics briefly mentioned include the relative strength index, Bollinger bands, rate of change, moving average convergence-divergence, moving averages, equivolume and candlestick and point-and-figure charts. Readers looking for a detailed discussion and examples of these studies will be disappointed.

Magee developed a specific methodology for investing, using technical analysis that includes risk (diversification by industry, geography and investment type), portfolio management and control, rhythmic trading (position liquidation as the market matures and changes direction) and personal psychological management.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

The Introduction to the Magee System of Technical Analysis. (Book Reviews)
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?