Sunday, October 19, 2008

"Trade secrets revealed"

Over the past few years I've been receiving multiple emails asking me to explain in greater details what kind of technical  analysis I use in order to achieve substantial accuracy on direction and timing of major market turns and spotting trading opportunities in individual stocks.

We all heard "On the left side of the chart it is science, on the right side it is art"

That "right side" for me was always DeMark studies ( over the years I applied my own interpretations and some modifications to DeMark's indicators, but books below served as essential reference to most of my trading)

Book Reviews

Unlike other technical analysis books, DeMark's two volumes on his exclusive indicators give you ready-to-implement formulas, and he discusses the logic behind those ideas. Whereas other authors discuss head-and-shoulders ad nauseam, DeMark gives you new ideas. You can implement his indicators (most of which don't work all the time, unsurprisingly), and can then think of ways to improve them. Of course, in the end, you have to keep in mind that the market is more or less a legalized casino, where only a lucky few can come out ahead in the long run. Luck is probably the most important trading system you'll need.

If you're an experienced trader, you must read this book! If you trade based on any type of Technical Methodology, then this book should be on your book shelf. Granted, it could get complicated for novice traders, but once you've grasped the basics of Technical Analysis, don't hesitate to purchase this classic. Anyone that sees this title in the used section, grab it quick, the price is a true disparity!!

I've been struggling for weeks now to recreate many of Demark's indicators for the Ninjatrader platform in C# - relying soley on the original explanations in Tom Demark's book. There are a lot of very detailed logic rules for these indicators that , if you blink, you'll miss a step in the procedure. Jason Perl's book is exactly what I have been looking for.
He breaks down each indicator in a top down pseudo code step by step format that makes understanding and code translation a breeze. There are also numerous Q & A's that I found extremely insightful.


milt tomkins said...

These are great books..I will quote from them in my thesis about hedge fund secrecy. I also learned a lot about hedge fund trading strategies from 2 other books. Hedge Fund Trading Secrets Robert Dorfman..and Confessions of a Street Addict of course by Jim Cramer..written before he got really famous..both are very riveting and informative. You should check them out if you like reading behind the scenes stuff about hedge funds.