In order for technical analysis to deliver useful knowledge that can be applied to trading, it must evolve into a rigorous observational science.
Evidence-Based Technical Analysis examines how you can apply the scientific method, and recently developed statistical tests, to determine the true effectiveness of technical trading signals. Throughout these pages, expert David Aronson details this new type of technical analysis that-unlike traditional technical analysisis restricted to objective rules, whose historical profitability can be quantified and scrutinized. Filled with in-depth insights and practical advice, Evidence-Based Technical Analysis provides you with comprehensive coverage of this new methodology, which is specifically designed for evaluating the performance of rules/signals that are discovered by data mining. Experimental results presented in the book will show you that data mining-a process in which many rules are back-tested and the best performing rules are selected-is an effective