The Science of Financial Market Trading
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Author(s): D. K. Mak
Publisher: World Scientific
ISBN: 9812382526
Format: hardback
245pp
Price: £33.00
Review Date: 12 May 2003
Review: Here the author looks at how some of the financial markets may not be random from a mathematical point of view and examines how they can be modelled from different scientific perspectives. He goes on to design some new discussing indicators and tests them on real market data. These indicators are quite objective, as opposed to price patterns that are rather subjective. The indictors are designed to have very little time lag – an important factor in trading when delay may cause lost profits. Why certain market movements will follow certain indicator responses is explained and, more significantly, divergences between price and certain indicator responses are interpreted. Forecasting when the market is going to turn is emphasized.