Andrew Allentuck

Friday, February 9, 2001

Technical Analysis from A to Z: Covers Every Trading Too... from the Absolute Breadth Index to the Zig Zag
By Steven B. Achelis
McGraw-Hill Ryerson, 2nd ed., 380 pages

Technical analysis, conventionally speaking, is the examination of stock price and volume movements to discern where prices are headed. It is controversial and, in simplistic form, not a reliable guide to where stocks are headed. Mr. Achelis, author of MetaStock, a widely used software tool, and a frequent guest on CNBC, takes technical analysis to a higher level. He discusses the assumptions in the Black-Scholes option pricing formula, vital to understanding the equation and its operation. He explains Bollinger Bands, which are price movement and trading indicators for certain assets and indices.

Mr.Achelis includes traditional technical analysis of the traditional sort, he also discusses advanced quantitative techniques, all without requiring that the reader have math skills beyond at most a little algebra. The value of this book to the serious trader cannot be overemphasized. It is a reference any investor should have an consult.