Filtered Waves. Basic Theory by Arthur A.Merrill

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Arthur A.Merrill – Filtered Waves. Basic Theory

183 pages, illustrated. “Based on this simple but substantial base, the book presents and examines charts for every bull and bear market since 1898; it presents charts for the life expectancy of rallies and secondary reactions. Applications of the method to individual stocks, and other uses are described. The appendixes and a complete presentation of the Elliott Wave Theory.” FINE HARDCOVER, VERY GOOD DUST JACKET, signed by the author. Size: 8vo – over 7¾” – 9¾” tall.Bookseller Inventory # 023255

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Review

I procrastinated buying this book because it was fairly expensive, but that was a mistake. Basically it covers the topic of wave counting and Dow Theory, but how to do it in a mechanical way. When I say wave counting, of course, I am referring to Elliot Wave Theory. Anyone who has taken a serious look at Elliot Wave will come to discover nobody who counts waves over any reasonable period of time on a chart will come to the same conclusion as anyone else. This book gives you a great method for making the entire process mechanical.

I then went on with his concepts to develop software for Tradestation that counts waves (something that was not commercially available that I could find) and then developed a very successful mechanical trading program for the S&P from it. I laughed because I never imagined myself doing wave counting successfully as a mechanical systems trader. This is a great little book that is very straight forward and limited in scope; simplistic and powerful. Much of the book is date however, as would be expecte for a publishing date of 1977. I do recommend it for anyone who strives to build trading methodologies from solid numerical concepts and wants to learn different viewpoints for cyclical analysis in the stock market.