Trading Tactics in the Financial Market

Financial markets are not predictable, let alone controllable. The one thing traders and investors can control is their trading tactics, where some can have higher probability of profitability than others. This book explains, by using phase analysis, why some of the indicators, and trading tactics would work better than others, and why some indicators and trading tactics would perform poorly. Emphasis is placed on Awesome Oscillator and Accelerator Oscillator, which are based on Simple Moving Average, a popular tool employed by traders. They are then compared to Moving Average Convergence-Divergence (MACD) and MACD Histogram (MACDH), which are based on exponential moving averages. By varying the parameters of MACD and MACDH, one can change the phase or time delay, and possibly make a larger profit.

This book is for practitioners, and includes all MATLAB programs used in the book.

Explains Simple Moving Average (SMA) and Exponential Moving Average (EMA): their uses and limitations Divides the frequency spectrum of trading tactics into Profit Zone and Loss Zone Performs Fourier analysis on real market data and applies various trading tactics to gauge their profitability

Autorentext

Don K. Mak was a research scientist for the Canada Federal Government, and an Adjunct Professor at Queen's University (Canada). He has published over fifty papers in condensed matter physics, materials evaluation, and medical diagnosis. His book, Science of Financial Market Trading, has been adopted as a textbook and reference by universities worldwide. The book, Solving Everyday Problems with the Scientific Method, of which he is the lead author, has been used by universities and colleges as references in several countries, and has been translated into Korean, Chinese and Arabic.

Klappentext

Financial markets are not predictable, let alone controllable. The one thing traders and investors can control is their trading tactics, where some can have higher probability of profitability than others. This book explains, by using phase analysis, why some of the indicators, and trading tactics would work better than others, and why some indicators and trading tactics would perform poorly. Emphasis is placed on Awesome Oscillator and Accelerator Oscillator, which are based on Simple Moving Average, a popular tool employed by traders. They are then compared to Moving Average Convergence-Divergence (MACD) and MACD Histogram (MACDH), which are based on exponential moving averages. By varying the parameters of MACD and MACDH, one can change the phase or time delay, and possibly make a larger profit. This book is for practitioners, and includes all MATLAB programs used in the book.

Inhalt
Chapter 1: Trading Tactics in Technical Analysis.- Chapter 2: Market Turning Points.- Chapter 3: Simple Moving Average.- Chapter 4: Exponential Moving Average.- Chapter 5: Awesome Oscillator and Accelerator Oscillator.- Chapter 6: Moving Average Convergence-Divergence and its Histogram.- Chapter 7: Trading Tactics in the Real Market.- Chapter 8: Analysis of the Trading Tactics.- Chapter 9: Epilogue.- Appendix.- Bibliography.- Index.