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The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals

The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals

Andrew W. Lo, Jasmina Hasanhodzic

ISBN: 978-0-470-95273-3 February 2011 224 Pages

 E-Book

$19.99

Description

A comprehensive history of the evolution of technical analysis from ancient times to the Internet age

Whether driven by mass psychology, fear or greed of investors, the forces of supply and demand, or a combination, technical analysis has flourished for thousands of years on the outskirts of the financial establishment. In The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals, MIT's Andrew W. Lo details how the charting of past stock prices for the purpose of identifying trends, patterns, strength, and cycles within market data has allowed traders to make informed investment decisions based in logic, rather than on luck. The book

  • Reveals the origins of technical analysis
  • Compares and contrasts the Eastern practices of China and Japan to Western methods
  • Details the contributions of pioneers such as Charles Dow, Munehisa Homma, Humphrey B. Neill, and William D. Gann

The Evolution of Technical Analysis explores the fascinating history of technical analysis, tracing where technical analysts failed, how they succeeded, and what it all means for today's traders and investors.

Introduction.

Chapter 1 Ancient Roots.

The Beginnings.

Ancient Babylon.

Ancient Greece.

Ancient Rome.

Negative Attitudes toward Traders.

Chapter 2 The Middle Ages and the Renaissance.

Western Europe.

Technical Analysis.

Societal Attitudes.

Chapter 3 Asia.

Japan.

China.

Chapter 4 The New World.

Wall Street.

Societal Attitudes.

Chapter 5 A New Age for Technical Analysis.

Dow Theory.

Relative Strength.

Market Cycles and Waves.

Chart Patterns.

Volume of Trading.

Market Breadth.

Nontechnical Analysis.

Chapter 6 Technical Analysis Today.

Trends.

Patterns.

Strength.

Cycles.

Wall Street’s Reinterpretation of Technical Analysis.

Chapter 7 A Brief History of Randomness and Efficient Markets.

Prices As Objects of Study.

The Emergence of Efficient Markets.

What Is Random?

Chapter 8 Academic Approaches to Technical Analysis.

Theoretical Underpinnings.

Empirical Evaluation.

Adaptive Markets and Technical Analysis.

Notes.

Bibliography.

Acknowledgments.

About the Authors.

Index.