The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators (Wiley Finance) [Hardcover]

Tushar S. Chande (Author), Stanley Kroll (Author)

Book Description

Series: Wiley Finance | Publication Date: April 1994

The breakthrough trader’s guidebook that combines the latest, most promising methods of technical analysis with the classic tactics of risk control and money management… In The New Technical Trader, trading system wizard Tushar Chande and money management expert Stanley Kroll present a bold new array of dynamic, price-based, and risk control indicators that provide timely, reliable answers to the difficult analytic challenges of pattern recognition, variable indicator length, and price projection. Developed by the authors to overcome the specific limitations of existing technical indicators, they can be used in virtually any market—futures, commodities, stocks, indices, and mutual funds. Each new indicator is supported by step-by-step tutorials and real-world trading scenarios that illustrate the best strategies for its use, and show how to adapt it to your trading style. Now you can develop a successful, comprehensive personalized trading plan using:

• New momentum oscillators—the Chande momentum oscillator, stochastic RSI oscillator, variable-length dynamic momentum index—that overcome the limitations of the relative strength index
• Qstick, a quantitative candlestick that generates objective numbers instead of subjective patterns
• Linear regression analysis that quantifies trendiness, projects prices, and prompts the development of a better game plan

If you need to reliably project prices under different market conditions, estimate risk on new positions, create stops to cut your losses, or plot momentum swing failures, The New Technical Trader is your first place to turn. It’s the frontline guide for developing objective consistency in your decision making and gaining a valuable edge in today’s commodities, currency, and stock markets.

Editorial Reviews

From the Publisher

Extremely well-organized, comprehensive and written within the context of real-world trading, this guidebook integrates new methods of technical analysis with strategies for effective risk control and money management. Linear regression analysis, new momentum oscillators, VIDYA, Qstick, typical trade profile and contingency planning are among the topics discussed. Tutorials and practical examples explain indicators in detail.

From the Inside Flap

The New Technical Trader You watch the market challenge your position with every tick. But are your chosen technical indicators helping or hindering your performance? Do they cope responsively with the glut of fast-changing electronic data? Are they consistently generating the signals you need to make profitable, real-time life and death decisions? Do they dovetail into a trading system based on objective decision making and prudent risk control? Are your risk control strategies proactive, letting you manage your trades aggressively? If not, turn to The New Technical Trader for a new generation of robust indicators designed to provide a valuable edge in today’s markets. In this leading-edge guide, top analyst Tushar Chande and supertrader Stanley Kroll show you their latest, most promising methods of price analysis with the classic tactics and strategies of risk control and money management. The result is a personalized, winning trading system that adjusts automatically to market volatility, generates reliable entry and exit signals, shrewdly estimates risk on new and current positions, and promotes superior portfolio selection. Turn to The New Technical Trader to redefine the basic building blocks of a typical trading system: from moving averages, to momentum oscillators; from price patterns to profitability templates. Learn how to transform the components of popular, static technical indicators—relative strength index, momentum, stochastic oscillator, and more—into dynamic price oscillators that are nimbler than their static predecessors. Detailed tutorials and profuse illustrations from real-life commodity, currency, and stock market trading scenarios offer specific rules for testing these oscillators, so you can readily adapt them to your trading style. Discover how to:

• Develop price forecasts for the next trading day, and beyond. Master the essentials of regression analysis to quantify trend strength, detect early warning signs of potential trend changes, and promote a more objective, less emotional approach to trading.
• Switch to dynamic moving averages that adjust their effective length based on market momentum or volatility, so you can set unique stops, develop trading bands for a breakout trading system, and pinpoint resistance or support.
• Improve identification of candlestick patterns. With Qstick, you can quantify both the internal momentum and shadows, and produce objective numbers to look at rather than a pattern to ponder.
• Exploit powerful new indicators for risk control. You’ll find the hottest new indicators for: creating price-time templates to close out losers and cash out of fast rising winners, learning how to aggressively manage open trades using the maximum favorable excursion, performing what-if simulations with the projected price range to prepare for any market eventuality, and using volatility-based stops to get you in or take you out.

In today’s fiercely competitive futures and financial markets, your success depends on mastering fast-changing market information and using it to make swift, smart, strategic trading and investment decisions. Designed to help you handle the good days, and the bad, The New Technical Trader is the proactive, single source guide for playing the winning percentages and reaping bigger trading profits with minimum risk.

See all Editorial Reviews

Product Details

• Hardcover: 224 pages
• Publisher: Wiley; 1 edition (April 1994)
• Language: English
• ISBN-10: 0471597805
• ISBN-13: 978-0471597803
• Product Dimensions: 9.1 x 6.1 x 0.9 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #941,244 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

16 of 17 people found the following review helpful:

4.0 out of 5 stars Nice introduction to intermediate-level technical analysis, June 29, 1998

By A Customer

Amazon Verified Purchase

This review is from: The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators (Wiley Finance) (Hardcover)

Discusses interesting twists on traditional indicators, such as Stochastic RSI which combines concepts from the Stochastic and the RSI, or Qstick, which quantifies the candlestick approach. If you're the math-innovative-type, this book can really stimulate your imagination to further develop your own indicators. The presentation, though clear in most parts, contains some vague paragraphs which make no sense without prior background in the material. I wouldn't recommend this as a first book on technical analysis (if that's what you're looking for, try Technical Analysis from A to Z by Achelis). However, once past the basics, this is what you need if you're planning to dig deeper and get more serious. I warn you though that all the colorful promises (exemplified by only one example in most cases) as to how much better these indicators are may not hold in general. However, they do contain some very important concepts needed to refine the standard technical indicators and can serve as a springboard for new ideas.

22 of 27 people found the following review helpful:

3.0 out of 5 stars The Latest Indicators Are Not Necessarily The Best, August 14, 1999

By A Customer

This review is from: The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators (Wiley Finance) (Hardcover)

This is a decent book. However, I really do not see what great advantage StochRSI and VHF can present the prospective reader. Both of these indicators are very jumpy, so you do get a headstart but at what cost? Slower indicators on the other hand get you in later usually towards the middle or the end of a move. Each has it's own advantage and disadvantage. Though it is important to remember that consistency is what works in the long run. I will say that Mr.Chande seems like a respectable writer. This is much more than I can say for the vast majority of authors out there. One last thing, trading is not about having the latest indicators. Trading consists of three equally important parts; methodology, pyschology and risk managment. If you are missing one you will surely fail over the long run. This book consists primarily of methodology but it is not too different from most of the material already out there.

8 of 10 people found the following review helpful:

4.0 out of 5 stars Some good ideas, July 19, 2001

By 

Robert Goodman (NY, USA) - See all my reviews

This review is from: The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators (Wiley Finance) (Hardcover)

There are some new ideas about indicators in this book. I haven't test whether they can beat the old indicators. The authors also could not give such a test. But if you are a creative technician, you can learn how to create new indicators yourself. I did it. It was an interesting process but might not be profitable! It would be better if this book could have a CDROM that contains all the formula in Metastock, Excel or Tradestation formats.