John F. Ehlers - "Cybernetic Analysis for Stocks and Futures", 1st Ed.

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.

In this work, Ehlers develops and demonstrates profoundly effective new trading tools through the application of modern digital signal processing techniques. Obtaining accurate cycle measurements within five samples with virtually zero lag, these tools have proven in real-time use to consistently provide traders with razor-sharp buy and sell signals in virtually any market–meeting or exceeding the performance of commercial systems which cost hundreds or even thousands of dollars.

Modernizing popular trading procedures to take advantage of the incredible computing speed and power available to today’s trader, Ehlers introduces:

• The Fisher Transform–ensure that the density function of any indicator is Gaussian, creating sharper trading signals
• The Relative Vigor Index–a responsive oscillator in which movement is normalized to the trading range of each bar
• Improved Hilbert Transform–a more responsive method to accurately measure market cycles
• The Sinewave Indicator–a non-causal filter that gives entry and exit signals 1/16 of a cycle period in advance of the turning point
• The Laguerre Transform–a new tool to address the smoothing versus lag problem more effectively and create better smoothing filters
• Super Smoothing Filters–provide more smoothing with less lag
• Simple Moving Average Computations–two new ways to compute the simple moving average with unprecedented ease

Advances made in computer technology in the past two decades have clearly outpaced advances in trading software and practice. Cybernetic Analysis for Stocks and Futures seeks to restore the balance between computational power and user proficiency. Combining new indicators with tested systems for forecasting stock and futures markets with surgical precision, it will drive your systems to new levels of predictive accuracy, trading effectiveness, and overall profitability.