A technical resource for self-directed traders who want to understand the scientific underpinnings of the filters and indicators used in trading decisions This is a technical resource book written for self-directed traders who want to understand the scientific underpinnings of the filters and indicators they use in their trading decisions. There is plenty of theory and years of research behind the unique solutions provided in this book, but the emphasis is on simplicity rather than mathematical purity. In particular, the solutions use a pragmatic approach to attain effective trading results. Cycle Analytics for Traders will allow traders to think of their indicators and trading strategies in the frequency domain as well as their motions in the time domain. This new viewpoint will enable them to select the most efficient filter lengths for the job at hand. * Shows an awareness of Spectral Dilation, and how to eliminate it or to use it to your advantage * Discusses how to use Automatic Gain Control (AGC) to normalize indicator amplitude swings * Explains thinking of prices in the frequency domain as well as in the time domain * Creates an awareness that all indicators are statistical rather than absolute, as implied by their single line displays * Sheds light on several advanced cookbook filters * Showcases new advanced indicators like the Even Better Sinewave and Decycler Indicators * Explains how to use transforms to improve the display and interpretation of indicators

A Revolutionary Way to Trade

"John Ehlers, ‘master of cycles, ’delivers more than just the definitive work on cycle analysis and adaptive techniques; he raises financial mathematics to a higher level. The book solves the problem of identifying sideways and trending markets, and teaches how to minimize lag. For nonmathematicians, Ehlers provides clear chapter summaries and fully programmed systems that make this book a prize."–Perry J. Kaufman, President of Strategic Market Systems, Author of Trading Systems and Methods

"John Ehlers combines innovative insights into price behavior with a powerful, concrete approach to trading. The result is a unique blend of high theory and hands-on, practical trading systems and methods."–Nelson Freeburg, Editor of Formula Research

"John Ehlers has made more original, analytically sound contributions to the study of technical analysis than anyone except Art Merrill. This volume caps years of development and makes available to traders successful techniques they would have little chance of creating on their own. I recommend it to all advanced traders without hesitation." –John Sweeney, Editor of Technical Analysis of Stocks & Commodities magazine

"John Ehlers has been a regular standout in trading system rankings for many years. Now we know why! Rocket Science for Traders is a true tour de force!"–David Brown, retired CEO of Telescan

Visit our Web site at www.wileyfinance.com

Cutting-edge insight from the leader in trading technology
In Cybernetic Analysis for Stocks and Futures, noted technical analyst John Ehlers continues to enlighten readers on the art of predicting the market based on tested systems. With application of his engineering expertise, Ehlers explains the latest, most advanced techniques that help traders predict stock and futures markets with surgical precision. Unique new indicators and automatic trading systems are described in text as well as Easy Language and EFS code. The approaches are universal and robust enough to be applied to a full range of market conditions.
John F. Ehlers (Santa Barbara, CA) is President of MESA Software (www.mesasoftware.com) and has also written Rocket Science for Traders (0-471-40567-1) as well as numerous articles for Futures and Technical Analysis of Stocks & Commodities magazines.

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.