Cycle Analytics for Traders + Downloadable Software: Advanced Technical Trading Concepts Hardcover – November 18, 2013

Cycles are a unique kind of trading analytics, being one of the few types of market data that can be accurately measured. But understanding what the cycles mean and which trades to make based on them is an extremely complex process. Cycle Analytics for Traders is a technical resource for self-directed traders that explains the scientific underpinnings of the filters and indicators used to make effective and profitable trading decisions. Rather than simply using cycle analytics on blind faith, this book explores and explains the how and why of cycles.

Though technical in nature, Cycle Analytics for Traders emphasizes simplicity rather than mathematical purity, taking a pragmatic real-world approach to attaining effective trading results. It allows traders to think of indicators and trading strategies in the frequency domain as well as their motions in the time domain, letting them select the most efficient filter lengths for the job at hand. Traders with little mathematical background will learn how to assess general market conditions to their advantage while technically astute traders will be able to create indicators and strategies that automatically adapt to measured market conditions using the computer code described here.

Additionally, author John Ehlers explains several vital concepts all traders should understand: how to eliminate or use Spectral Dilation to their advantage; how to use Automatic Gain Control to normalize indicator amplitude swings; the fact that all indicators are statistical rather than absolute; how to use advanced cookbook filters; several different methods for estimating market spectra and sifting out the Dominant Cycle; and how to use transforms to improve the display and interpretation of indicators.

Cycle Analytics for Traders shows traders how to approach trading as a statistical process that should be judged from the long-term view, rather than a small sample set of just a few trades—no matter how profitable those few are. With this practical and informative book as a guide, any trader can master cycle analytics, letting statistics and science light the way to long-term trading success.