After we sell short at L, we have only to wait for the index to tell us whether our judgement is correct. Our stops are placed above near-term supply, at a price just over 155. The index begins to ease downward on only modest...

Our outlook for this index at I is now bearish enough that we have liquidated our long position. There have been consistent indications of distribution by strong hands; our point & figure targets have all been achieved;...

Distribution is only possible when the mass of traders are positive on the market. Published editorials and reports from July to September give us some insight into traders’ outlook and mood during this period. All of the...

After a correction to E, the index rallies weakly before gapping to a correction low at F. By now the index has marked time for two weeks, and new support has been building between 145 and 150. Further, the distribution between...

After our purchases at A and again at B, the index rallies strongly over the following two months. At C,the rally accelerates on widening spread and increased volume.This set of conditions is characteristic of the markup stage...

Next, we take up the action of an industrial index as it rises out of a period of reaccumulation. Prior to the action shown on the chart, the index rose within a well-established uptrend. The index has shown evidence of...

The Art of Selling Trading is a business of merchandising. As in any such business, the objective is to merchandise inventory at a price above cost. Successful traders accumulate positions at wholesale, when public interest is...

We established our long position by increments at I, J and M. Now GE rallies into a range of supply which extends from about 11 to just over 12 before settling into narrow trading just above 11. The stock is now in strong hands...