Table of Contents

Preface. Acknowledgments. Introduction. 1 Ralph J. Acampora. 2 Laszlo Birinyi. 3 Walter Deemer. 4 Paul Desmond. 5 Gail Dudack. 6 Robert J. Farrell. 7 Ian McAvity. 8 John Murphy. 9 Robert Prechter. 10 Linda Raschke. 11 Alan R. Shaw. 12 Anthony Tabell. 13 Stan Weinstein. 14 Conviction: Countering the Skeptics and the Scoundrels. The validity of technical analysis. Acceptance by academics. Sustaining confidence while sustaining losses. Literature versus experience. Hard and fast rules and proven theories. Wider applications for technical analysis. Proving the validity of technical analysis. 15 The Evolution of Technical Analysis. Evolution of the craft. New indicators and patterns. Computer software and the craft. Computer-generated signals. Hand-drawn charts. 16 Luck, Astrology, and Other Unsanctioned Signs. The role of luck in technical analysis. Astrology and the credibility of the craft. Elliott wave, Gann's postulates, and Fibonacci numbers. 17 Creativity, Talent, and the Art of the Craft. The Role of Creativity. A talent for technical analysis. Personality traits of the highly successful. Hard work and dedication. Analysis as art. 18 The Challenge of Emotions. Losing money. Emotional interference. Separating emotions from the work. 19 The Path to Success. Artificial intelligence. The key to success. 20 Favorite Patterns and Indicators. Most and least reliable indicator. Testing. The effect of market conditions. Indicative versus descript. References. Index.

Promotional Information

- 14 of the key pioneers in technical analysis, many of them successful authors in their own right - Andrew Lo is one of the most respected figures in academic and professional finance

About the Author

A ndrew W. L o is the Harris & Harris Group Professor of Finance at the MIT Sloan School of Management and the director of MIT's Laboratory for Financial Engineering. His previous books include The Econometrics of Financial Markets, A Non-Random Walk Down Wall Street, and Hedge Funds: An Analytic Perspective . He is also the founder and chief scientific officer of AlphaSimplex Group, LLC, a quantitative investment management company based in Cambridge, Massachusetts. J asmina H asanhodzic is a research scientist at AlphaSimplex Group, LLC, where she develops quantitative investment strategies and benchmarks, including the CS 130/30 Index. She received her PhD from MIT's Department of Electrical Engineering and Computer Science, where she proposed new methods for automating technical analysis and replicating hedge fund betas. Her work has appeared in the Journal Of Investment Management and Institutional Investor's Alpha magazine. A summa cum laude graduate of Yale College, Hasanhodzic is a recipient of a number of awards for academic excellence and a member of several honor societies, such as Sigma Xi, the Scientific Research Society.

Reviews

?Technical trading is ubiquitous in financial markets, which might explain some major financial-market anomalies and makes it an important topic for research. Like good scientists, Lo and Hasanhodzic explore this territory by gathering first-hand observations, with fascinating results.?
?Carol Osler
Program Director, Lemberg Masters in International Economics and Finance
Brandeis International Business School, Brandeis University

?The Heretics of Finance is a fascinating view of the art and craft of technical analysis. For finance professionals and academics alike, this book is an excellent introduction to what technical analysts do and why it may make sense in modern markets. An enjoyable and very enlightening book.?
?Maureen O?Hara
Robert W. Purcell Professor of Finance
The Johnson School, Cornell University

?In the last twenty years, academics have piled up evidence on the puzzling success of technical analysis, yet few researchers are very familiar with the thinking of technicians. Lo?s and Hasanhodzic?s interviews with well-known technicians illuminate their thinking on the markets and their profession. The Heretics of Finance is a must-read for economists studying technical analysis, behavioral finance, or related market anomalies. I recommend it highly.?
?Christopher J. Neely, PhD
Assistant Vice President, Federal Reserve Bank of St. Louis