Instead of a ‘random walk’ which precludes consistently making short-term profits, short-term traders believe prices move more in a ‘drunken walk,’ going in a random direction and carrying that momentum until a correction comes along. Then the process repeats itself in the other direction. This creates a wave-like pattern which can then be analyzed. Maximum Entropy Spectrum Analysis (MESA) is a method of price pattern analysis developed from the field of electrical engineering. Using wave theory, Ehlers, the original pioneer of the use of MESA in the field of trading, helps readers develop systems that spontaneously analyze the trend of the market and lead them toward trading profits.
Book Details:
- Author: John F. Ehlers
- ISBN: 9780470304419
- Year Published: 2002
- Pages: 173
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Instead of a ‘random walk’ which precludes consistently making short-term profits, short-term traders believe prices move more in a ‘drunken walk,’ going in a random direction and carrying that momentum until a correction comes along. Then the process repeats itself in the other direction. This creates a wave-like pattern which can then be analyzed. Maximum Entropy Spectrum Analysis (MESA) is a method of price pattern analysis developed from the field of electrical engineering. Using wave theory, Ehlers, the original pioneer of the use of MESA in the field of trading, helps readers develop systems that spontaneously analyze the trend of the market and lead them toward trading profits.
Ehlers’ MESA systems have consistently been rated #1 by Futures Truth, the consumer reports organization of the futures industry. Many of the top brokerages lease his signals to supply to their customers. MESA is a regular topic of interest for the technical analysis community ever since its release. Now the pioneer of the technique updates his theories and makes them more accessible to a wider trading audience.
This completely revised edition includes five all new chapters that incorporate the author’s digital signal processing research into MESA. * Contains EasyLanguage programming code so traders can make the leap from theory to practice with ease. * The author, who is the pioneer of the technique, updates his theories and makes them more accessible to a wider trading audience.
About the Author
JOHN F. EHLERS received his BSEE and MSEE from the University of Missouri and did his doctoral work at the George Washington University, majoring in fields and waves and minoring in information theory. A private trader since 1976, he is currently President of MESA Software (www.mesasoftware.com) and has also written Rocket Science for Traders (Wiley) as well as numerous articles for Futures and Technical Analysis of Stocks & Commodities magazines. He has now expanded the scope of his contributions to technical analysis through the application of scientific digital signal processing techniques.