Mastering Market Timing: Using the Works of L. M. Lowry and R. D. Wyckoff to Identify Key Market Turning Points

by Richard A. Dickson, Tracy L. Knudsen

For generations, technical market analysts have relied on the Wyckoff method for understanding price/volume interactions-a breakthrough technique created by Richard D. Wyckoff, one of the most influential traders in stock market history. More recently, many technical analysts have also applied the Lowry Analysis, an exceptionally powerful approach to understanding the forces of supply and demand that are the starting point for all macro-analysis. Now, for the first time, two leaders at Lowry Research discuss how to combine these methods. Drawing on more than 45 years of experience as technical analysts, Richard A. Dickson and Tracy Knudsen introduce a uniquely powerful, objective, and quantifiable approach to applying traditional price/volume analysis. By understanding their techniques, investors can gain insights unavailable through other technical methodologies, and uncover subtle indications of emerging trend shifts before other methods can reveal them.

Genres: Finance, Business, Economics

206 pages, Hardcover

First published June 29, 2011

Reviews

[Ben Wong · Rating 2 out of 5]

it was good at the beginning but then started to get boring when indicators were shown that we generally dont have access to unless we fork out money. major turn off, especially when i read to gain knowledge, and all that knowledge in this book revolves around "wow look how good our proprietary indicator is!".

[Josiah R · Rating 3 out of 5]

This book is a good step-by-step walkthrough of Richard Wyckoff-based analysis of major tops and bottoms in the markets over the past 40-50 years, and a look at some of the indicators Lowry's uses in addition to the more classical analysis. I think the book is effective at teaching the reader how a student of the Wyckoff method should analyze the market. On the whole, I would say the book focuses on teaching you to time the markets through the Wyckoff method plus a combination of several measures of market breadth.

90% days are one interesting indicator mentioned, as well as buying power / selling pressure, the NYSE Composite A-D line, and % of stocks trading above their 30 week moving average. Though the buying power/selling pressure indicators, which are heavily touted in the book, are proprietary, I was able to find some studies that mimic their behavior, at least partially, and I can see where they would provide some value as divergence indicators. 90% down days are defined as when downside volume is >= 90% of up + down volume AND points lost is >= 90% of points gained + points lost. The BP/SP indicator is based on daily up/down volume and total volume in the NYSE Composite, as well as points gained/lost (points are not necessarily from the NYSE Composite ... I believe it may be taken from their "operating companies only" index which weeds out ADRs and bond funds and such and so would only register points gained/lost for actual operating companies).

As a final note, I liked how the book clarifies how Lowry's classifies trends in the market, whether a secular trend or a cyclical trend, with several examples to help you differentiate. This is a distinction I hadn't yet made before reading the book.

All in all I would say it is worth the short read even though most of the information applies mostly to very long term trends in the market and perhaps not individual stocks. The main turnoff is that they sell you on indicators you really can't use unless you subscribe to their service. Other than that I think it was good.

[Gmarik · Rating 2 out of 5]

Was hard to read (as for a financial noob).

Reason for reading: wanted to educate myself about market timing. Probably a wrong book to start with.

Learned few things, but likely I won't be able to apply learned since it requires access to metrics I have no access (yet?).