Stair Stops: Using Basing Points to Ratchet Stops in Bull & Bear Markets

“This may be the most important book on stops of this decade for the general investor.”
Professor Henry Pruden, Ph.D.
Golden Gate University

A complete exposition and clarification of the Basing Points Procedure (using the three days away rule) as presented by John Magee (with clarification and illustration by WHC Bassetti) in Technical Analysis of Stock Trends.

Magee’s original description and chart (like Fermat’s Last Theorem) left some ambiguities to explain.

Bassetti explains them and expands on the procedure in this eBook and illustrates the process which may well be the most important procedure extant for investors.

Download your PDF copy of this important and valuable 60+ page eBook for only $29.99.

If you’re not already a subscriber to this website, you’ll also receive a free 2 week subscription with your purchase!

Get this eBook and a hardcover copy of the ninth edition of Technical Analysis of Stock Trend for free!
Check out our special annual subscription offer.

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The Sacred Chickens, The Holy Grail and Dow Theory or Replacing Dow Theory with John Magee’s Basing Points Procedure

Dow Theory has served technicians and long-term investors in the Dow, more or less, since, more or less, 1897.

Robert D. Edwards and John Magee wrote their classic work, Technical Analysis of Stock Trends for “the mid-term speculator” - the trader/investor who wanted to attempt to capture trends of shorter length than Dow Theory primary market moves.

 

Of the methods presented in their book, one, particularly, called the Basing Points Procedure, can be adapted to long term (Dow Theory length) investing. The method has many virtues, among them simplicity, clarity, ease of use, tenacious trend following capability, stop advancement to lock in profits, almost algorithmic operation, unambiguous signals when the trend changes. In short, the Holy Grail.

In this book WHC Bassetti uses his own adaptation of the Basing Points Procedure on the Dow Industrials since more or less 1900 and compares its results with those of the commonly agreed upon results of the Dow Theory over the same period. 

For contrast and comic relief a comparison to Buy-and-Hold is made. The result reveals that Magee’s adapted procedure is an attractive and simple alternative to Dow Theory and may even be considered superior to it.

Download your PDF copy of this important and valuable 30+ page eBook for only $19.99.

If you’re not already a subscriber to this website, you’ll also receive a free 2 week subscription with your purchase!

Get this eBook and a hardcover copy of the ninth edition of Technical Analysis of Stock Trend for free!
Check out our special annual subscription offer.