Has anyone read either of these books? They look very interesting to me. Especially the first one, which appears to be about applying modern signal analysis techniques to stocks… so we’re talking about adaptive filters that “lock on” to trends and cycles, versus a fixed-period EMA for instance. I’ve noticed that I have to use most indicators as “good enough,” and kind-of filter out the rough spots by mentally ignoring them when they seem not to apply. You know, like when a price seems to plow through a given MA again and again, I’m not going to pretend it might be support 10 minutes later! Well, maybe these more advanced indicators apply more often. Sounds like something I’d like to play with, if it’s any good.
[EDIT: If you've blocked my beautiful Amazon images, the two books are: Cybernetic Analysis for Stocks and Futures by John Ehler, and Evidence-Based Technical Analysis, by Davin Aronson.]
February 8th, 2007 at 9:59 pm
Either of which two books? Has my AdBlock filtered out some images?
February 8th, 2007 at 10:02 pm
@tyro: probably. They are: Cybernetic Analysis of Stocks and Futures, by John Ehlers, and Evidence-Based Technical Analysis, by David Aronson.
February 12th, 2007 at 5:39 am
I picked up “Evidence-Based Technical Analysis” and have been reading a chapter on the occasions when I have a few free minutes and the inclination. I’m a stickler for reading things cover-to-cover so I’ve just finished with the first section on biases… which I take to be primarily introductory material to setup the remaining part(s) of the book. As such, I don’t really have an conclusion as to value of the book, but I find what I believe to be the book’s premise interesting (i.e. that which is knowable is quantifiable and testable).
Dr. Steenbarger mentioned on his blog having read the book.
His entries are located here:
http://traderfeed.blogspot.com/2006/10/evidence-based-trading-why-philosophy.html
http://traderfeed.blogspot.com/2006/10/can-there-be-objective-basis-for.html
- MikeB
(side note: I was pleased to see Dr. Steenbarger mention Ayn Rand in the first post. My two passions for the past ~year have been learning to trade and exploring Rand’s philosophy - Objectivism… not necessarily in that order)