New Thinking in Technical Analysis: Trading Models from the Masters [Anglais] [Relié]

In New Thinking in Technical Analysis: Trading Models From the Masters, a dozen top authorities reveal their techniques and strategies for successful trading. This book offers market participants a treasury of tools to improve their investment performance, each from a unique and time-tested perspective. Readers will find immense value in the straightforward, user-friendly, application-rich presentation of market dynamics forecasting in this invaluable guide. Enhanced with over 170 charts and illustrations, New Thinking will become the primary companion of every trader seeking to gain a competitive edge.

New Thinking in Technical Analysis contributors include: Thomas R. DeMark (New Market Timing Techniques), Peter Eliades, Larry McMillan (McMillan on Options), Robin Mesch, John J. Murphy (Technical Analysis of the Financial Markets), Steve Nison (Japanese Candlestick Charting Techniques), Steven Poser, Linda B. Raschke (Street Smarts: High Probability Short Term Trading Strategies), Bernie Schaeffer (The Option Advisor), Courtney D. Smith (Option Strategies), Ken Tower, and Larry Williams (Long-Term Secrets to Short-Term Trading).

Inside each chapter:

• Descriptions of a particular model, what it measures, and the theory behind it
• Explanation of how the technique works and how it is validated
• Helpful illustrations, featuring multiple screen images
• Discussion of each technique's particular value and usefulness as compared with alternative models
• Examples of how and in what situation the technique is applicable--and when not to use the model

To my knowledge, no one else had tackled a project like this, one that would encompass in one volume the work of so many different and proven practitioners. Jack Schwager's Market Wizards was a terrific insight into the minds of some of the best traders, but it lacked definitive "how to" information from empiricists. Schwager made readers realize the importance of psychological aspects of successful trading, but the book did not describe or convey an understanding of how these experts actually do what they do. The goal of New Thinking in Technical Analysis: Trading Models from the Masters is to answer that much-asked question.

Each of the twelve authors in this book is a recognized master in the particular model or approach to technical analysis that is described. The book starts out with an introductory chapter covering swing trading and underlying principles of technical analysis from Linda Bradford Raschke, one of the most recognized names in successful technical trading. Chapter 1 is followed by the preeminent thinking on intermarket analysis of John J. Murphy, author of the reference book that most all of us studied to learn technical analysis.

The book then moves on to three consecutive chapters on using different types of technical charts. CNBC regular guest Ken Tower describes how moving averages can better define market dynamics on point and figure charts. Japanese Candlestick authority Steve Nison then explains how to combine candle charts with standard technical analysis tools to better define risk/reward parameters. Third, in an incredibly insightful chapter on the use of one of my favorite models but one that is lesser known, Robin Mesch, a master at anticipating the moves of the U.S. bond market, provides a compelling argument for using the tool of Market Profile.

The middle part of the book delves into models that define market turns, cycles, and projections. My friend and mentor, Tom DeMark, elaborates two revolutionary oscillators that redefine the concept of overbought/oversold parameters. Readers will be convinced to discard old favorites like Relative Strength Index and stochastics. Tom is followed by one of the biggest names in cycle work, Peter Eliades, who deftly explains the concept and uses of market cycle definition to help predict timing, price movement, and projection points. This section of the book concludes with the work of Steve Poser, one of the very few people I know who can actually make money using Elliott Wave analysis—in real time. This methodology has always been a mystery to me as I have rarely found anyone who knew which wave count the market was in while it was in it. Steve has a very good grasp of the concept and practice, and has written a terrific chapter for both the newcomer and the long-time wave surfer.

The book then broadens its depth and focus by including some very robust work in the field of options and market sentiment. This penultimate section starts with the truest of masters in the options world, Larry McMillan. More people have learned options from Larry's textbook, Options as a Strategic Investment, than from any other. His contribution here on volatility trading is a classic. Larry is followed by another giant in option analysis, Bernie Schaeffer. Bernie's powerful chapter on options, technical analysis, and investor sentiment provides the tools readers will need to learn how to combine the three topics to make more profitable trading decisions. The section concludes with an exciting new area—sentiment for individual stocks—written by the single greatest name in the futures markets, Larry Williams. Larry describes how market decision makers can gain access to the underlying sentiment for individual stocks, a largely unexplored area, yet one that can aid tremendously in judging extreme optimism or pessimism prevalent regarding a stock at any time.

The book concludes with weather-tested money management techniques from one of the best in the business, Courtney Smith. Courtney's insights into the market are constantly sought, making him a frequent guest on Bloomberg Television, CNBC, and CNNfn, as well as a speaker at countless industry seminars. Take special note of Courtney's lessons in money management to develop a well-rounded and rigorous investment discipline, which will save you heartache, headache, and most of all, money.

New Thinking in Technical Analysis: Trading Models from the Masters, with its wealth of illustrative charts and examples, is specifically designed to guide you through each master's technique and models in a logical and progressive way. I have purposely tried to make each chapter independent rather than force the reader to string chapters together to absorb a cohesive theme. The authors followed basic structural guidelines, but the content was uniquely theirs. The theme that runs true throughout the book is each contributor's desire to share carefully developed and easily applied thinking that can make a difference in your investing success. Truly, these twelve men and women are deservedly called masters of technical analysis.

Rick Bensignor