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

by Thomas R. DeMark (Author) "Whether a trader is a practitioner of fundamental or of technical analysis, invariably, at one time or another, he has relied on trendlines to make..." (more)
Key Phrases: price pivot points, retracement qualifier, magnet price, Logical Information Machines, Price Projector, Nov Dec (more...)

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

Product Description
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

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Product Details

• Paperback: 247 pages
• Publisher: Wiley; 1 edition (September 21, 1994)
• Language: English
• ISBN-10: 0471035483
• ISBN-13: 978-0471035480
• Product Dimensions: 9.7 x 7.2 x 0.8 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars See all reviews (35 customer reviews)
• Amazon.com Sales Rank: #108,685 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

19 of 20 people found the following review helpful:

5.0 out of 5 stars This book is exceptional for traders, November 7, 2004

By	Horst "Horst T" (Frankfurt) - See all my reviews

I am here at the IFTA conference and the market trading models on Bloomberg are the talk of the seminar. These indicators are described in detail in this book as well as the author's other two books. These are not the typical tupe of trading tools that most all traders use and trade unsuccessfully. If our trading desk and portfolio managers had their preference they wish that nobody would use these trading models. That appears not to be the case since everyone seems to be using them. Since the techniques are designed to operate totally the opposite to all other trading devices they become a discipline that contols one's emeotiuons when oen trades. In that regard alone these methods are exceptional.

I recommend strongly this book as well as the author's other two books.

23 of 25 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

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.

13 of 13 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 (TOP 100 REVIEWER)

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.