MESA and Trading Market Cycles: Forecasting and Trading Strategies from the Creator of MESA: 124 (Wiley Trading) - Hardcover

Ehlers, John F.

Hardcover

ISBN 10: 0471151963 ISBN 13: 9780471151968

Publisher: Wiley, 2002

Synopsis

Makes one of the most popular tools of market analysis available to a wider audience of traders and technical analysts
Pioneered by John Ehlers in the late 1970s, the MESA method of price pattern analysis uses powerful wave theory analysis techniques, originally developed for the field of electrical engineering, to measure market cycles. MESA systems are currently used by technical analysts the world over. Top brokerages lease them and supply their clients with MESA signals and charts. And MESA systems consistently have been rated #1 by Futures Truth, the consumer reports organization of the futures industry. In this highly anticipated Second Edition of his classic work, Ehlers updates his MESA theories and makes them more accessible to a wider trading audience. Completely revised, featuring five new chapters, this new edition incorporates Ehlers's digital signal processing research into MESA. It also includes EasyLanguage programming code that makes it extremely easy for traders to take the leap from theory to practice.

About this title

About the Author

JOHN F. EHLERS received his BSEE and MSEE from the University of Missouri and did his doctoral work at the George Washington University, majoring in fields and waves and minoring in information theory. A private trader since 1976, he is currently President of MESA Software (www.mesasoftware.com) and has also written Rocket Science for Traders (Wiley) as well as numerous articles for Futures and Technical Analysis of Stocks & Commodities magazines. He has now expanded the scope of his contributions to technical analysis through the application of scientific digital signal processing techniques.

From the Back Cover

THE PIONEER OF MESA RETURNS TO UPDATE THE MOST SUCCESSFUL APPROACH TO TRADING THE MARKET USING CYCLES

In this highly anticipated second edition of MESA and Trading Market Cycles, MESA pioneer John Ehlers updates his theories and makes them even more accessible to the entire trading community. Completely revised to reflect the most current developments in MESA-a well-known computerized analysis tool designed to trade market cycles-this Second Edition reveals more of the inner workings and hidden mechanisms of MESA, while showing you how to successfully apply it in the stock, options, and futures markets.

Topics discussed include:
* The Sinewave Indicator and the Instantaneous Trendline
* Making standard indicators adaptive: Commodity Channel Indicator (CCI), Relative Strength Indicator (RSI), and Stochastic Indicator
* Developing highly effective automatic trading systems using MESA-measured cycles
* Stock market systems
* EasyLanguage programming code that allows you to make the leap from theory to practice with ease
* And much more

If you are looking for a proven strategy to increase your chances of correctly predicting trends and making successful trades, look no further. MESA and Trading Market Cycles, Second Edition provides the expert knowledge, tools, and guidance that will enhance your probability of successful trades and increase your bottom line.

From the Inside Flap

Cycles appear everywhere in life, from the world of nature to the world of economics. Market cycles-one of the few measurable market parameters-come and go, but when measured with a fast-reacting algorithm such as Maximum Entropy Spectrum Analysis (MESA), previously unforeseen trading opportunities suddenly become apparent.

In MESA and Trading Market Cycles, Second Edition, MESA pioneer John F. Ehlers returns to reveal more of the inner workings and hidden mechanisms of MESA-the author's well-known and highly respected computerized trading system-and provides both traders and professional speculators with definitive information on using cyclical analysis to create and execute highly profitable forecasting and trading strategies.

This revised and completely updated resource first validates the existence of market cycles by reviewing the history of cycles and the advances in techniques to measure them. It then profiles the basic characteristics of cycles and fully describes moving averages, momentum functions, and indicators from the cyclical perspective. From here, Ehlers focuses on MESA, explaining how it works, how it compares to the Fast Fourier Transformation (FFT), and how traders can use its high-resolution spectral estimates to consistently pinpoint and exploit market cycles and trends.

MESA and Trading Market Cycles, Second Edition also contains new chapters which provide information that makes MESA a much more powerful tool. Topics within these chapters include:
* The Sinewave Indicator
* The Instantaneous Trendline
* Trading Trend Mode and Cycle Mode
* Making standard indicators adaptive:Commodity Channel Indicator (CCI), Relative Strength Indicator (RSI), and Stochastic Indicator
* Developing highly effective automatic trading systems using MESA-measured cycles
* Stock market systems, along with computer code (EasyLanguage) to implement them

Combining MESA, cycles, and technical analysis, this vital guide shows you-whether you're trading in the stock, options, or futures markets-how to boost the probability of establishing successful trades and profitably increase your bottom line. MESA and Trading Market Cycles introduces you to a new way of thinking that will not only lead to highly effective new indicators, but will also provide you with insights into market activity that you would never have imagined.

Edition details

• Publisher: Wiley
• Publication date: 2002
• Language: English
• ISBN 10: 0471151963
• ISBN 13: 9780471151968
• Binding: Hardcover
• Edition number: 2
• Number of pages: 192