A few days ago, I finally finished reading Evidence-Based Technical Analysis. This book was part of the required reading for the Chartered Market Technician examination, but since only a portion of the book was required for the test, I had never read the whole thing. I decided to do so, and although I didn't really learn anything practical from it for my own trading, it was an interesting read nonetheless.
The book's principal message is that the vast majority – – practically all, really – – of technical analysis is a big, steaming pile o' crap since it isn't based on the scientific method. I found it curious that this book was required by the CMT since the author seems to diss probably 95% of what the CMT membership uses as the basis for their own analysis and trading. It would be sort of like the Catholic Church requiring its membership to read The God Delusion.
The book's message shouldn't be dismissed, of course. The author puts his arguments out there with force and logic, and it is a very reasonable premise. My take on it is that he believes any method that doesn't conform to the rigors of the scientific method (being testable, verifiable, refutable, etc.) is no better than reading goat entrails. The author takes particular aim at the entire realm of Elliott Wave; I won't detail the image that came to mind as I read the author's views about Elliott Wave, but it definitely involved a stack of EW material on the ground and the author unzipping his fly to relieve himself.
In any event, if you're of a scientific or statistical frame of mind, you will probably love the book.
Just about the most different volume I can imagine from the above is the new biography of George Carlin, Last Words. Regular Slopers know that George has been a long-time hero of mine, and although I'm just one-third of the way through this book, I imagine he'll be promoted to Idol by the time I'm done reading it. I am absolutely loving reading this book, and I can tell the final two-thirds will be just as much of a treat. If you're a Carlin fan, you should get it; it's really marvelous, and these days, I am really appreciate of anything that can put a smile on my face.
