TABLE OF CONTENTS—VOLUME TWO Section 16—Individual Chart Studies-Part VI ‘The Four Phases of Market Campaigns Price, Volume and Price-Volume Relationship, Vertical Charts and Figure Charts Determine Direction and Objectives of Selling Climax Secondary Reaction Technical Rally Importance of Judgment and Timing Important Points Self-Quiz Section 17—Individual Chart Studi Vertical Chart vs. Figure Charts Select Strong Issues Bullish Indications Upthrusts When to Close Out Your Position Important Points Self-Quiz Section 18—Selecting The Best Stocks Deductive vs. Inductive Reasoning Determining the Position and Trend of the Market Stocks are Bullish, Bearish, or Neutral The Position Sheet and Inductive Analysis of the Market “The Five Market Positions Use the Position Sheet ta Determine ‘Which Groups will Move Fastest and Farthost ‘The Technical Position Barometer Important Points, Self-Quiz Section 19—How To Determine the Technical Position of an Individual Stock The Position Sheet Vertical Charts vs. Figure Charts, Bull, Bear, Neutral Positions Practice Placing Stocks on Position Sheets Important Points Self-Quiz Section 20—Buying and Selling Tests Practice Applying the Principles ‘The Nine Buying and Selling Tests Profit-Risk Ratio Important Points Self-Quiz Section 21—Retinement in Accumulation Analysis ‘Accumulation with a Terminal Shake-out A Terminal Shake-out Ordinary Shake-out Thrust Movement Rally Out of an Oversold Position Without Evidence of Accumulation Accumulation with a Perfect Apex and a Perfect Springboard Important Points Selt-Quiz ‘Section 22—The Wyckoff Wave Construction of the Wyckoff Wave The Table of Data The Intra-day Wave Chart Splicing Your Charts The Optimism-Pessimism Index Intra-day Wave Chart Analysis Important Points Self-Quiz Section 23—Stop Orders First Rule in Trading: Cut Losses Short ‘The Stop Order ‘Stop Orders to Limit Risk ‘Stop Orders Used to Insure Profits Stop Orders to Begin New Trades Important Points Selt-Quiz vue, IME 32.6 32.0 52.0 1474 ive a1 25 : BAGLY Abs 16. 2 45 BanCameNIce 98.2 4714 48.2 Sh 48 BAUS Li 2306 231223 13 baxTei 13.2 42.6 15.2 6156, etn STL 7 5 Isic Take: 210 20:4 20) Bea ean 52:4 5117 52:1 3a37 worse cascay 37.2 36.337, 449 sukLicTON N47.4 45.0 tnt 47 Erretnt 52:3 5110 51:1 vba 51-2 Section 24—General Instructions ‘Trading on Paper Overtrading Where to Study the Market Devoting Time to the Market Selling Short Selecting Stocks Placing Orders Do Not Straddlo ‘Judging the Market from Newspapers Dividends Pyramiding Averaging Closing Your Trades WSMI Recommends Important Points Self-Quiz ‘Section 25—Market Philosophy Emotions and the Market Making Decisions Capital and Courage Prudence and Pliability When in Doubt, Get Out Prospective Profits Patience and Solf-Reliance Do Not Mix Methods Important Points Self-Quiz Appendix: A The Trend Barometer B Why We Do Not Give Advice © Coaching D Are You Applying Sound Principles? E Dally Procedure F Conclusion Glossary—Dictionary of Stock Market and SMI Terms Answer Keys—Section Self-Quiz, Self-Grading Answers