The New Science of Technical Analysis

Introduction

It's amazing how precise the formulas and the contents labels for health products must be and how closely they are monitored to ensure the physical safety of consumers. On the other hand, it is disturbing that no such prescription or safeguard exists to guarantee the financial safety of investors' assets by requiring thorough testing and analysis of the techniques employed to trade their funds. It's a sad commentary to see supposedly well-educated, trained individuals risk huge sums of money applying artistic and totally subjective methods to arrive at trading decisions. Surely enough historical and profitable observations have been made to justify the use of various market timing approaches. Unfortunately, most cases are identified retrospectively; when the human eye is trained to select only those examples that work best and to overlook the many unprofitable ones.

Too often, analysts fail to dissect techniques in order to ferret out what is important and what can contribute to their trading success. Throughout many years, I have isolated a number of the key components of various market timing approaches. With the help of charts, data, and other empirical observations, I will identify these important elements, as well as many others. This book should enable you to become a successful trader. Although it is not essential that you accept all the techniques and suggestions presented in order to improve your trading capability and versatility, proficiency in a few should ...