Suchergebnisse

For years, systems theory has been applied successfully in all fields of technology, but its impact on the world of finance has to date been limited. This book aims to rectify this situation. Readers will no longer be able to assert that money cannot be reliably earned on the financial markets: one might just as well say that man has never set foot on the moon. The potential reader may be frightened by the number of formulas, but can be reassured that almost all of them can be skipped.

The present book avoids the fantasy recipes that abound in technical analysis and focuses instead on those that are statistically correct and can be understood by newcomers as well as appreciated by professionals. The described protocols and techniques will prove invaluable in analyzing market behavior and assisting in trading decisions. The algorithms used in the technical analysis of financial markets have changed beyond recognition. This book offers a more efficient technical analysis - one that is not satisfied with protocols that just seem to be fine, but which requires that they are indeed fine, verifying this through simulations on the PC, serious statistical counts, and so on.

Introduction -- Warnings -- Part 1 -- What we are talking about -- Transaction costs -- Market Depth -- Leverage effect -- Trends do exist -- The basic signals -- The triads -- The signals -- Protocol validation -- Two case studies -- Combinations -- Cycle -- The Trading Plan -- Never fight the trend, the trend is your friend -- Double sampling -- Part 2 -- Platforms in parallel -- Elementary Smoothing: EMA -- The Hull algorithm -- Systems Validation -- DEMA -- DEMAg -- TEMA and Sam's TEMA (TEMAS) -- Sam's Hound -- Part 3 -- ATR -- How to download the data -- The stops -- Intraday volatility -- The protocol for the stop loss and the take profit -- Wiggles -- How to close the position -- Avoiding to be wiped out -- Heikin Ashi -- HA average -- The Chaikin volatility -- Noah effect -- Volatility Explosions -- Third-degree interpolation -- The strategy of John Gilbert and Frederick Mosteller (G & M) -- Swans -- RSID (RSI detrended) -- The Pristine method -- Donkey -- Conclusion