Mastering Hurst Cycle Analysis [Paperback]
A modern treatment of Hurst's original system of financial market analysisby Christopher Grafton
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Description of Mastering Hurst Cycle AnalysisOne of the best classical methods of technical analysis brought up to date
This book offers a modern treatment of Hurst's original system of market cycle analysis. It will teach you how to get to the point where you can isolate cycles in any freely-traded financial instrument and make an assessment of their likely future course.
Although Hurst's methodology can seem outwardly complex, the logic underpinning it is straightforward. With practice the skill needed to conduct a full cycle analysis quickly and effectively will become second nature. The rewards for becoming adept are high conviction trades, tight risk management and mastery of a largely non-correlated system of analysis.
In this extensive step-by-step guide you will find a full description of the principal tools and techniques taught by Hurst as well as over 120 colour charts, together with tables and diagrams. The Updata and TradeStation code for all of the indicators shown is also included.
Press and Industry Reviews"A carefully constructed, thorough and extremely readable guide to a complicated area of technical analysis. It is well presented and illustrated throughout with 120 legible diagrams and financial charts, showing real examples from the markets that make Hurst's work accessible."
- Money Maker magazine
"This book is highly-recommended for any market analyst or trader who wishes to add cycles to their analytical toolbox. This is a clear and concise introduction."
- Bill Sarubbi, Fund Manager, Cycles Research Investments LLC, Vienna
"Cycles are one of the most underutilised, and yet most rewarding, sources of information available to an analyst or investor. If it is possible to anticipate a reversal, and track it in real time, then eager investors should want to know about it. Until relatively recently, cycles have not been properly understood, so there has been a dearth of practical knowledge. This gap is now being filled by dedicated researchers such as Chris Grafton. His book brings together the ideas of one of the pioneers of cycle analysis - the engineer, J.M. Hurst - and presents them in an easily understandable and very useable form. Once mastered, the techniques explored in the book should be a source of significantly enhanced market understanding and very profitable investment."
- Tony Plummer, Author, Forecasting Financial Markets, Director, Helmsman Economics Ltd
"I really like this book. It takes the excellent original idea of Hurst and brings it right up-to-date in the modern computer era. It explains cycles and harmonics and shows how to construct Valid Trend Lines and Lines of Future Demarcation. It does not pretend that this subject is easy, but does explain it with very clear charts and writing. The work shows the relationship to Elliott waves and RSI oscillations. There are some clear worked examples and ideas of how to put on and manage a trade. Most investors will find it a useful addition to their knowledge. Well done Chris Grafton."
- Robin Griffiths, Cazenove Capital Management
"Through clear, straightforward explanations of the tools and up-to-date market illustrations, Grafton makes Hurst cycle analysis accessible to today's trader. Readers gain not only a thorough understanding of cycles but also the skills to begin implementing cyclic analysis immediately."
- Julie Dahlquist, Ph.D., CMT, Editor of the Journal of Technical Analysis and coauthor of Technical Analysis: The Complete Resource for Financial Market Technicians
"JM Hurst's Cyclic Principles are perhaps the most powerful yet misunderstood concepts about the workings of financial markets in the history of financial trading. Published in the 1970s, Hurst's work has survived into the 21st century because it is so powerful and effective, but the application of his principles and the practice of his trading methodology have been shrouded in a cloak of arcane mystery. Christopher Grafton has done a great service to the 21st century trader by thoroughly presenting Hurst's work in a format that replaces the pencil, eraser and chart pad with a computer. Armed with the tools that Grafton includes in the book (and an understanding of how to apply them) the reader will be well placed to start honing their analytical skills and putting this powerful theory to profitable use."
- David Hickson, creator of Sentient Trader - Hurst Trading System (www.sentienttrader.com)
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About Christopher GraftonChristopher Grafton is currently Director, Principal Analyst and Systems Developer at Vectisma Ltd., an independent market analysis firm focusing on Japanese equities with a global macro overlay, based in England. Previously, he has held positions on the sell side at several investment banks in London and Tokyo and also worked as an analyst and trader for a London-based hedge fund specialising in Japanese equities.
Christopher speaks fluent Japanese, is a member of the Market Technicians Association, is a successful systems designer, programmer and trader, and holds the Chartered Market Technician designation.
Contents of Mastering Hurst Cycle AnalysisAbout the author
Acknowledgments and thanks
1. The Properties Of Cycles
Visualising Period and Amplitude
How Cycles Combine
Properties of Market Cycles
2. Basic Tools I: Valid Trendlines
Trend and Trendlines
The Concept of Trendlines
The Real Nature of Trend
The Valid Trendline (VTL)
The Key Role Played by VTLs
3. Basic Tools II: Displaced Cycles - The FLD
Properties of the FLD
Plotting the FLD
4. Isolating Market Cycles I
Phasing Analysis Set Up
Conducting a Phasing Analysis
5. Isolating Cycles II
Phasing Analysis - Daily Chart
6. Selection, Set Up And Entry
Creating a Shortlist
Entering the Trade
7. Managing Open Positions
Case Study - JP Morgan Chase 2002/2003
8. RSI And Elliott Wave
RSI and Elliott Wave - The Basics
Case Study I: Gold, November 2008
Case Study II: Euro/USD, January 2010
Appendix 1: Elliott Wave Patterns
Appendix 2: FLD Code
Appendix 3: Inverse Moving Average Code
Appendix 4: Cycle Envelope Code
Appendix 5: Diamonds Grid and Numbers
Appendix 6: Final Diamond Placement Code
Appendix 7: Discrete Fourier Transform Code
Appendix 8: Volatility Index code
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