ABSTRACT
This chapter shows that stocks often move in parallel trends, sometimes for months, occasionally even for years. It also shows that they may, and do, break out of trend or change the direction of their trends without notice. The chapter considers a line parallel to a Blue Trend across the Bottom of the trend so as to include a segment of the Trend Channel between two Tops within parallel lines. It expalins the important and rather difficult question of determining the Minor Tops and Bottoms. The chapter explores a compact set of trading rules based on these Red and Blue trendlines. The climax indicates the sale of large amounts of stock by strong investors to weak traders, near the top; the liquidation of holdings by weak traders occurs near the bottom, into the hands of strong investors who will hold them for the next Major Move.
