New Concepts in Technical Trading Systems : Book Review

"New Concepts in Technical Trading Systems" by J. Welles Wilder is a valuable resource for traders looking to enhance their investment decisions through the use of technical analysis. The book is organized into three main parts, each covering different aspects of this discipline.

Wilder starts by introducing trend-following indicators, such as moving averages and parabolic SAR. He explains how these tools can be used effectively to identify market trends and capitalize on them. Additionally, he introduces the Relative Strength Index (RSI) as a way to measure market conditions of being overbought or oversold.

The second part of the book delves into oscillators, which provide insights into price movements within a specific range. Wilder offers a comprehensive explanation of popular oscillators like the Average Directional Index (ADX) and the Commodity Channel Index (CCI). He includes detailed examples and formulas to facilitate a better understanding of these concepts.

Lastly, Wilder focuses on system testing and optimization, a crucial aspect of trading. He discusses the Efficient Market Hypothesis (EMH) and provides guidance on how traders can develop and test their own trading systems to maximize profitability while minimizing risks.

"New Concepts in Technical Trading Systems" is written in a clear and concise manner, making it accessible to readers with various levels of technical analysis knowledge. Whether you are a beginner or an experienced trader, this book offers valuable insights and strategies to improve your trading skills.

What are readers saying?

"New Concepts in Technical Trading Systems" authored by J. Welles Wilder has generated a mixed reception among readers. Overall, the book is viewed as informative and comprehensive, offering valuable insights into technical trading systems. Nonetheless, some reviewers have voiced concerns regarding the complexity and difficulty in understanding the content.

Many readers applaud the depth of knowledge presented in "New Concepts in Technical Trading Systems." They find the book to be an invaluable resource for comprehending various technical indicators and systems employed in trading. The author's detailed explanations and practical examples are lauded for their clarity and applicability. Reviewers note that the book offers valuable insights that can readily be applied to real-world trading scenarios.

Despite the positive reception, several readers contend that the book becomes overwhelming, especially for beginners in the field of technical analysis. Criticisms are directed towards the author's use of technical jargon without providing sufficient simplified explanations. Some reviewers assert that the book assumes a certain level of prior knowledge, rendering it inaccessible to those without a strong background in trading.

Notwithstanding these critiques, the majority of reviewers acknowledge the significant impact "New Concepts in Technical Trading Systems" has had on the field. Many credit J. Welles Wilder for introducing innovative concepts and indicators that continue to be widely used today. They applaud the author's pioneering work and the valuable tools presented in the book.

In conclusion, "New Concepts in Technical Trading Systems" by J. Welles Wilder provides valuable insights into technical trading systems and is regarded as a comprehensive resource by many readers. While some reviewers criticize the book's complexity and difficulty in understanding, others appreciate the wealth of knowledge and practical examples it offers. Overall, the book is praised for its influential role in the field of technical analysis and the introduction of innovative concepts.

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