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

Product Details

• Amazon Sales Rank: #199757 in Books
• Published on: 1994-10-05
• Released on: 1994-09-21
• Original language: English
• Number of items: 1
• Binding: Paperback
• 247 pages

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.

From the Inside Flap
The New Science of Technical Analysis He’s been a most-valued advisor to such financial barons as Leon Cooper-man and Laurence Tisch. He and his models have shaped the investment strategies at some of the largest and most successful trading operations in the world, including Tudor Group, Odyssey Partners, and Warburg, Pincus. His word is gold among decision-makers at such investment giants as Goldman Sachs, Citibank, Discount Corp., and Criterion Fund. Now, at last, Thomas DeMark has decided to go public and share with traders and investors everywhere the proven forecasting techniques that have made him one of the most potent behind-the-scenes forces in the financial world. In this, his long-awaited first book, technical analysis guru Thomas R. DeMark describes the sophisticated market timing models, which he developed over the course of nearly a quarter century, devoted to the study of market trends and forecasting techniques. Rigorously scientific, rather than "artistic" or intuitive, the empirically based approach DeMark describes eliminates the reliance on gut-feelings and guesswork and serves as the rational foundation for dynamic systems that mechanically generate buy and sell signals. Proven to work with every type of market and all forms of data, these systems, along with a number of new and highly effective indicators which he introduces for the first time in this book, will dramatically improve your trading capability and versatility. Written for readers of every degree of technical sophistication, The New Science of Technical Analysis progresses in difficulty from the basics of how to draw a trend line, to high-level discussions of the subtleties of the latest enhancements to popular indicators. Hence, while it arms the seasoned professional with a retinue of new and exciting tools which can be quickly integrated into his or her current analytical toolkit, the scientific approach to chart analysis it describes provides beginners with a solid foundation upon which to build a high order of trading research expertise. The first book to reveal the technical secrets behind one of the most potent forces in finance today, The New Science of Technical Analysis is sure to be ranked among the rare handful of books that irrevocably transform the way business is done around the world.

Customer Reviews

This book is exceptional for traders
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.

Eye opener
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.

I can't understand how this got published
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.