The New Science of Technical Analysis (Wiley Finance) [Paperback]

Thomas R. DeMark (Author)

Book Description

ISBN-10: 0471035483 | ISBN-13: 978-0471035480 | Publication Date: September 21, 1994 | Edition: 1

From the Foreword by John J. Murphy "DeMark's work as a consultant has been restricted to large institutions and many of the legendary traders in the world today. By sharing his creative ideas with us, as well as his passion for precision and improvement, Tom DeMark's emphasis on the 'new science' of technical analysis helps push the technical frontier another step forward. With the unprecedented attention now being paid to technical analysis, this new book couldn't have come at a better time." --John J. Murphy, bestselling author of Technical Analysis of the Futures Markets and Intermarket Technical Analysis, and technical analyst for CNBC "This book is filled with innovative, creative, and clever new ideas on technical analysis. Tom DeMark has done a wonderful job of turning subjective techniques into objective strategies and tactics." --Courtney Smith President and CIO Pinnacle Capital Management, Inc. "Those who know him and his work call him the consummate technician--a trading system developer without peer." --Futures magazine "DeMark is the ultimate indicator and systems guy. No one touches him. I know the Holy Grail of trading systems doesn't exist because if it did, Tom would have found it by now." --James Bianco Director of Arbor Trading "Tom DeMark is a genuine leader who has been behind-the-scenes until now. Publishing DeMark is a coup." --Ralph Vince author of The Mathematics of Money Management

Editorial Reviews

From Booklist

DeMark has spent 23 years trading stocks and futures and studying markets and is considered a major innovator in the field of technical market analysis. An expert on market timing and chart and trend analysis, he definitively and clearly explains his own methods and the new market indicators he has created and uses. He discounts as being too subjective many of the popular trend analysis techniques and suggests that they only seem successful in retrospect and fail to generate buy and sell signals adequately. His system is purely analytical and mechanical, and DeMark himself admits that it is unconventional and unorthodox. He does suggest, though, that his ideas may be applied universally to any event of a cyclical nature. This book is a Wiley Finance edition, one in a series of sophisticated financial market analyses issued by the publisher. David Rouse

From the Publisher

By taking a scientific rather than an artistic or intuitive approach to technical analysis, the author's concepts can be applied to all markets and data. Begins with the basics of how to draw a trendline and progresses to an understanding of the latest enhancements of popular indicators. Introduces several new and highly effective indicators.

See all Editorial Reviews

Product Details

• Paperback: 247 pages
• Publisher: Wiley; 1 edition (September 21, 1994)
• Language: English
• ISBN-10: 0471035483
• ISBN-13: 978-0471035480
• Product Dimensions: 9.6 x 7.4 x 0.6 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (37 customer reviews)
• Amazon Best Sellers Rank: #347,187 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

36 of 39 people found the following review helpful:

1.0 out of 5 stars I can't understand how this got published, January 18, 1999

By A Customer

This review is from: The New Science of Technical Analysis (Wiley Finance) (Paperback)

Most technical analysis books seem to fall into two broad categories. The first is marked by a lack of rigour in thought, lack of backtesting or any form of real verification, and sparse foundations in any form of mass psychology or mathematics. The second category is the antithesis of the first.

This book falls into the more lamentable category. The author's main handicap is an immense ego, which blinds him to the ridiculous claims he makes about his methods, without any real backup. (Nevermind that his editor must have been a total pushover, since its a very poorly edited book).

Second, his methods reveal feeble methodology. Want a good example? Lets look at his chapter on moving averages. He says one fault of simple moving averages is they don't discount the far past in relation to the near past. He mentions some other ones which have been addressed elsewhere. But there aren't any formulae! He then starts talking about his enhancements to moving averages. Half of it doesn't make too much sense, and he neglects to show any graphs.

There are a couple of nuggets in here. One in particular was TD Points, as he calls them. But all the useful things he says could have been summarized into 5-10 pages. He also doesn't really talk about futures, commodities, volatilities, and strategy.

In the end, I cannot figure out why Wiley would publish this book. It doesn't have the quality.

15 of 15 people found the following review helpful:

4.0 out of 5 stars Eye opener, November 2, 2004

By 

Gadgester "No Time, No Money" (Mother Earth) - See all my reviews
(HALL OF FAME REVIEWER)   

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This review is from: The New Science of Technical Analysis (Wiley Finance) (Paperback)

Unlike other technical analysis books, which focus on head-and-shoulders and other patterns and simple things like moving averages, DeMark's "New Science" book provides the reader two valuable things: 1) ready-to-implement technical indicators that can be programmed (assuming you have access to the necessary data), and 2) ideas for further research. My personal experience is that I haven't made any money using his indicators. For example, the Sequential indicator used to work but after the Internet bubble I've lost money with this indicator. But it did give me some ideas and made me look beyond things like double bottom which are even less reliable, not to mention difficult to implement.

If you are into trading system building and/or using formulas to create indicators, this is a must-read.

19 of 20 people found the following review helpful:

5.0 out of 5 stars Info overkill but great book nevertheless, February 11, 2006

By 

Craig (Illinois) - See all my reviews

This review is from: The New Science of Technical Analysis (Wiley Finance) (Paperback)

I heard the author speak a few years ago and was bowled over by all the information he covered. I concluded he was either a phenomenal salesman or he was truly an exceptional student of the market. i bought this book as well as one of his other two(?). I knew that if i truly wanted to digest what he presented I had to be committed to studying his techniques. Frustration reigned and interruptions only served to hamper my understanding. Fianlly, after losing countless dollars on sham techniques I learned at seminars and reading books by others I was determined to give the author a serious try. I have never regretted this decision. While nothing is perfect in the investment business I can certainly represent that the author's ideas are fresh, innovative, original and and have enhanced by trading performance markedly. Sure I still have losers and nothing is infallible but his techniques are the closest I have come to providing me with the knowledge and game plan to be a successful trader. Yes, I am making money, lots of it. No, I am not going to share what of his many tools have I found to be the most helpful. That is your job and if for no other reason, it is because some of the methods I may have found to be not to my liking may very well be suited to you and trading psyche. In any case, welcome to the world of a one of a kind trading mind. The author is special and so are his indicators.