A Closer Look At Divergences by Clive Roffey, Ph.D.
In 1972, the investor and
well-known goldbug James
Dines produced a 600-page
treatise called How The
Average Investor Can Use Technical Analysis For Stock
Profits. I regard this book,
unfortunately now out of print, as
comparable in the value of its
contribution to technical analysis to
the classic Technical Analysis Of
Stock Trends by Robert Edwards
and John Magee. If you can lay your
hands on Dinesís work, you should.
The first major section, on the
application of group and crowd
psychology to stock market movement,
is especially valuable.
Although the bookís emphasis is
on point and figure charting, it also
has the most thorough classifications
of market tops and bottoms
I have come across. In addition,
there are numerous general market
items of significant interest, such
as the relationship of market moves
to Presidential elections and the
value of the last digit in the year.
However, these are not my main
reasons for discussing Dinesís book.