8. Cycles and the Forward Line

When I was first involved in technical analysis in the 1960s, looking for patterns in the price charts was the basic means of analyzing stocks or any freely traded security. I learned point-and-figure first from books from Abe Cohen1 and from Earl Blumenthal2 on three-point reversal charts, and about one-point reversals from Alexander Wheelan.3 I learned about bar charts from William Jiler in his 1962 book, How Charts Can Help You in the Stock Market4 and from Edwards and Magee.5 Because there were only hand-operated adding machines for calculators in those days, and no spreadsheets, I cranked through rolls of paper with moving-average calculations of breadth figures and index prices, but never seemed to get anywhere ...

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