Recommended Reading

This is a discussion on Recommended Reading within the Trading Delta Cycles forums, part of the Specialists' Corner category; I would like to have a thread where we can suggest key literature that you have found to be the ...

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Old May 25, 2009, 9:14pm   #1
 
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Recommended Reading

I would like to have a thread where we can suggest key literature that you have found to be the most incisive in terms of understanding each of our esoteric subjects.

Preferably, each suggestion should be in the form of a synopsis, covering major chapters, and the key subjects that make a particular book stand out.
(rather than the usual, vague one-liners we normally get. For example, 2be has recommended to me Robert Miners book Dynamic Trader, mainly as he believes it covers Elliot clearly, as well as having a "cheat-sheet" on a specific version of the print. that sort of thing.)
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Thanks! The following members like this post: hwsteele
Old May 25, 2009, 9:36pm   #2
 
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I think this is a very good idea!!
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Old May 27, 2009, 1:49pm   #3
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I would like to recommend book written by John Murphy, Intermarket Technical Analysis.
The book explores the relationships between the 4 major market's and which ones are likely to be a leading indicators. The four markets considerred are: equity, commodoty, currency and bond markets. It is not the easiest book to read, with a lot of different markets being comparred to one another, but it is worth to stick and study this important work, especially so in such times as we are facing now.
The benifit is that one has some perspective of the possible moves, and one is likely to spot suspected moves of the given market, if the usual relationship with the corresponding market/s do not follow. This perspective shall prove to be very applicable in todays markets.
Sometime ago I have made a list of books which in my opinion have been very helpful in my journey of trading/market discovery. I have read more that that, but apart of a few light reading, some of the listed books I have studied and re-read.
I would also add R.Miner High probability Trading Strategies, which is a kind of a follow up from the first book with many extra material like ch2, Multiple TF Momentum Strategy,or ch3, Practical Pattern Rocognition for Trends and Corrections. I highly reco this book too, after studying his first one.
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File Type: doc List of trading books.doc (21.0 KB, 315 views)

Last edited by 2be; May 27, 2009 at 4:31pm.
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Old May 27, 2009, 4:40pm   #4
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I also thought to mentioned few threads that I have found useful. I do not follow them closely, but have learned a lot from them.
James16 FF
Both treads by Phillip Nel (M5 and H4 MACD) FF
Lever700, cornflower FF
Bobkus fibonacci FF
DIBS FF
No free lunch - esp Peter Crowns postings on inside bar trading FF
Trader Dante (have read the first 90 or so pages related to the over all trading strat) T2W
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Old Jun 5, 2009, 7:44am   #5
 
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Trading Chaos (Bill Williams)

trendie started this thread Trading Chaos; Maximise Profits with Proven technical techniques.
Bill Williams

Quite interesting. First few chapters deal with psychology, and market structure, and how to navigate them.
Then, they get onto how they trade. They use 3 separate entry methods, which was an insight as to how they increase their odds of success. Also, their pyramiding, ie, adding onto a winning trade has made me contemplate a similar approach, rather than just taking a “linear” trade.

Their rules are based on using the Alligator indicator, which is available freely. Its 3 MAs, with various offsets.

The entries are called “wise men”. And there are 3 of them.

The Alligator gives direction, and trades are taken with respect to the Alligator.

The first Wise Man is a speculative reversal, where the direction of the Alligator diverges from the line of the price causing a “divergence signal”. The description of this is very similar to the Pin-bar, or Doji. Effectively, price has diverged away from the Alligator, and the assumption is there will be some sort of bounce back.

The second Wise Man is the use of the Awesome Oscillator. This is also freely available, and is a histogram of the differences between a 34-MA and a 5-MA. The trigger is 3 consecutive red bars readying for a short, or 3 consec green bars for a long. The bar that causes the trigger has to “break”, you don’t just trade the oscillator. That is, for a buy, the bar that triggered the buy, price must break the high of the trigger bar, etc. Similarly for sells.

The Third Wise Man is a Fractal breakout. This is simply a bar that has either a high with 2 bars either side of lower-highs, or a bar that has a low with 2 bars either side with higher-lows. This reminds me of DeMark.

Exits are the break of the lowest 3-5 bars to exit a long, or a break of the highest of the past 3-5 bars to exit a short.

They used pyramiding, in that the first Wise Man signal is entered with 1 lot (since its speculative), the second Wise Man entered with 5 lots, and the fractal entries with 4 and then 3. Total lots per trade being about 15.

The rest of the book is about metaphysical stuff about mindsets, exercises such as “morning paper”, where you write for 3 pages worth of “stream of consciousness”, to get out of your system the nagging thoughts and mind-chatter going on in your head.

Overall, the thing that I will take away from this book is experimenting with multiple entries to maximise a decent trend.
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# If the only tool you have is a hammer, you tend to see every problem as a nail - Abraham Maslow
# There are 10 kinds of people in the world; those that understand binary, and those that dont. -Anon
# Ed Seykotas Whipsaw Song http://www.youtube.com/watch?v=LiE1V...Wlxk8&index=10
# Defeat is temporary. Giving up makes it permanent. Anon
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Old Jun 5, 2009, 12:49pm   #6
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Quote:
Originally Posted by trendie View Post
Trading Chaos; Maximise Profits with Proven technical techniques.
Bill Williams

Quite interesting. First few chapters deal with psychology, and market structure, and how to navigate them.
Then, they get onto how they trade. They use 3 separate entry methods, which was an insight as to how they increase their odds of success. Also, their pyramiding, ie, adding onto a winning trade has made me contemplate a similar approach, rather than just taking a “linear” trade.

Their rules are based on using the Alligator indicator, which is available freely. Its 3 MAs, with various offsets.

The entries are called “wise men”. And there are 3 of them.

The Alligator gives direction, and trades are taken with respect to the Alligator.

The first Wise Man is a speculative reversal, where the direction of the Alligator diverges from the line of the price causing a “divergence signal”. The description of this is very similar to the Pin-bar, or Doji. Effectively, price has diverged away from the Alligator, and the assumption is there will be some sort of bounce back.

The second Wise Man is the use of the Awesome Oscillator. This is also freely available, and is a histogram of the differences between a 34-MA and a 5-MA. The trigger is 3 consecutive red bars readying for a short, or 3 consec green bars for a long. The bar that causes the trigger has to “break”, you don’t just trade the oscillator. That is, for a buy, the bar that triggered the buy, price must break the high of the trigger bar, etc. Similarly for sells.

The Third Wise Man is a Fractal breakout. This is simply a bar that has either a high with 2 bars either side of lower-highs, or a bar that has a low with 2 bars either side with higher-lows. This reminds me of DeMark.

Exits are the break of the lowest 3-5 bars to exit a long, or a break of the highest of the past 3-5 bars to exit a short.

They used pyramiding, in that the first Wise Man signal is entered with 1 lot (since its speculative), the second Wise Man entered with 5 lots, and the fractal entries with 4 and then 3. Total lots per trade being about 15.

The rest of the book is about metaphysical stuff about mindsets, exercises such as “morning paper”, where you write for 3 pages worth of “stream of consciousness”, to get out of your system the nagging thoughts and mind-chatter going on in your head.

Overall, the thing that I will take away from this book is experimenting with multiple entries to maximise a decent trend.
Thanks for your very useful summary of this book.
There are indicators for MT4 in relation to the wise man 1, and the wise man 2, please let me know if you would like them. There is less need for the Wise man 3 indicator as it is a fractal entry and you have described it, and indeed all of them well.
I addition to it I have also found the concept of angulation very helpful, and I trade it with other filters but on a shorter TFs.
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Old Jun 18, 2009, 8:23am   #7
 
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trendie started this thread on FF I found a powerpoint of Chaos (Bill Williams). Have skimmed through it, thought it good as it gives a good overview.

Forex Factory - View Single Post - GBP/JPY BW CHAOS Trading
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# If the only tool you have is a hammer, you tend to see every problem as a nail - Abraham Maslow
# There are 10 kinds of people in the world; those that understand binary, and those that dont. -Anon
# Ed Seykotas Whipsaw Song http://www.youtube.com/watch?v=LiE1V...Wlxk8&index=10
# Defeat is temporary. Giving up makes it permanent. Anon
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Old Sep 7, 2009, 6:18pm   #8
Joined Jul 2009
Mystical Ju Ju

L&G
Thanks for having me. I am trading price action normally, yet:
I am interested in the connection between solar activity (sunspots) and trading.
While conducting research on cycles, I have come across Ray, who introduced me to Alexander L Chizhevsky.
"Life is a phenomenon. Its production is due to the influence of the dynamics of the cosmos on a passive subject. It lives due to dynamics, each oscillation of organic pulsation is coordinated with the cosmic heart in a grandiose whole of nebulas, stars, the sun and the planet."
- Alexander L Chizhevsky

Alexander L. Chizhevsky (1897-1964) was a true interdisciplinary cycles researcher who studied relationships between cosmological variables such as the solar cycle and human health and behaviour including propensity to fighting wars. Most of Chizhevsky's work was published in French and Russian and so unfortunately still remains unknown to English readers.

Prof. S Ertel writes "Soon I found myself looking, with due sense of duty, at unconventional claims of disrespected authors. Is there anything at Alexander Chizhevsky's claim that variations of solar activity and dependent geomagnetic oscillations have any impact on human mental life? I there any evidence of his claim that changes of minds among masses of people are triggered by solar magnetism manifesting themselves as upheavals, revolts, civil wars, revolutions, and other forms of "power from below"? (Chizhevsky had been banished by Stalinist "power from above" to some gulag in Ural). I found weaknesses in the Russian's archival procedure. To my surprise, however, my scrutiny of this hypothesis based on own data corroborated the gist of his results. Fortunately, representatives of mainstream science in the West where tolerance is decreed by law could not simply react to this finding by jailing the researcher."

Physical Factors of the Historical Process (1.3 MB) Cycles January 1971 reprint of an earlier article discussing solar effects on human behaviour, especially relating to war and other disturbances.

So, Ray has been researching this matter and he has told me few things:

The solar cycle is observed to also be shown in events on Earth, particularly such things as the aurora.

The aurora is due to showers of charged particles hitting the ionosphere.
When more charged partciles hit the ionosphere, it increases the amplitude of teh Schumann resonance.
The Schumann resonance is a vibration of the Earth's electromagnetic field at a rate representing the time it takes e/m to travel around the Earth. That is at about 7.5 Hz because speed of light is 300,000 km/s and Earth circumference is 40,000 km. Ratio = 7.5 Hz. This is teh natural oscillation of the Earth's e/m field.

Human brain waves have a variety of different bands of speed. One of these is ~8 Hz. In other words the human brain is like a radio that is tuned to the Earth's natural broadcasting frequency. When the Schumann frequency is stronger then it influences people more. Closely related to this is the fact that when people are in a faster than 8 Hz field their reaction times are faster and when in a slower one they are slower.

Am I making any sense here?
Enough for it to be Mystical Ju Ju?
I would honestly be willing to apply it to stock market sentiment, anyone `s come across this things before?

regards
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