New Concepts in Technical Trading Systems
$21.45
| Author(s) | |
|---|---|
| Product Type |
Ebook |
| Format |
|
| Skill Level |
Intermediate to Advanced |
| Pages |
116 |
| Publication Year |
1978 |
| Delivery |
Instant Download |
New Concepts in Technical Trading Systems is one of the most influential and foundational works in the history of modern technical analysis. Written by Welles J. Wilder, this book introduced a set of analytical tools that permanently reshaped how traders measure trend strength, volatility, momentum, and market direction.
Rather than relying on subjective chart interpretation, Wilder focused on quantifiable market behavior. In this work, he presents original concepts such as the Relative Strength Index (RSI), Average True Range (ATR), Directional Movement (+DI / −DI), and the Average Directional Index (ADX). These tools were designed to answer a critical question most traders struggle with: Is the market trending or not—and how strong is that trend?
The book emphasizes systematic thinking and disciplined rule construction. Wilder explains not only how each indicator is calculated, but why it exists and what market condition it is intended to measure. His approach avoids prediction and instead prioritizes market condition assessment, volatility awareness, and risk control.
This is not a modern indicator cookbook filled with shortcuts. It is a conceptual and mathematical foundation for technical trading systems that remain widely used decades after publication. Any trader using RSI, ADX, or ATR today is directly influenced by the principles laid out in this book.
✅ What You’ll Learn:
- The conceptual logic behind RSI, ATR, ADX, and Directional Movement.
- How to measure trend strength rather than simply identify trends.
- Why volatility is central to risk management and position sizing.
- How to distinguish trending markets from range-bound conditions.
- The importance of objective rules in technical trading systems.
- How indicator design reflects underlying market behavior.
- A foundational framework for building systematic trading models.
💡 Key Benefits:
- Introduces indicators still used by professionals worldwide.
- Provides deep understanding beyond surface-level indicator usage.
- Enhances discipline and objectivity in technical analysis.
- Improves risk awareness through volatility-based thinking.
- Serves as a timeless reference for system-based traders.
👤 Who This Book Is For:
- Traders who want to understand indicators at a conceptual level.
- Technical analysts building rule-based or systematic strategies.
- Intermediate traders moving beyond visual chart patterns.
- Advanced traders seeking the original logic behind classic tools.
📚 Table of Contents:
- The Missing Part of Most Trading Plans
- The Parabolic System
- The Volatility Index
- The Volatility System
- The Directional Movement Concept & System
- The Momentum Concept
- The Trend Balance Point System
- The Relative Strength Index
- The Reaction Trend System
- The Swing Index
- The Commodity Selection Index
- Capital Management
New Concepts in Technical Trading Systems By Welles Wilder
21 reviews for New Concepts in Technical Trading Systems
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Treasure Dalton (verified owner) –
The concepts are great for creating trading strategies that work.
I primarily trade the FOREX and these concepts have greatly improved my performance.
Leona Baldwin (verified owner) –
Great book easily explaining technical indicators still used today. It’s great getting it from the “inventor” himself. A timeless book.
Malani McLean (verified owner) –
Wilder’s work is the basis of so much of today’s technical analysis. Without his pioneering concepts that are outlined in this book, TA would not be where it is today. I recently attended the annual IFTA conference and there was an underlying theme of going back to the roots of TA and really understanding the concepts. Today, it is to easy to have every indicator imaginable on your screen without knowing how they really work. Reading Wilder’s book is a great way to learn or “re-learn” the underlying concepts.
Estelle Garrison (verified owner) –
God basics for the technician, but there are better sources and all information is free on the internet (if you know where to look).
I would suggest “Technical Traders Guide to Computer Analysis of the Futures Markets” and looking up the equations you want to get into more on the internet.
If you are a technician for a living then you must at least know what is in this book or you will be well behind on the very basics.
Jazlyn Page (verified owner) –
I am rating this book 5 stars because when it was first published it changed technical analysis forever. J. Wells Wilder did for traders what Bill James did for baseball. Wilder gave traders a quantitative edge through research and the invention of new technical indicators that measured price movement and added a new dimension to price charts. One of the many indicators he came up with was the Relative Strength Index or RSI which is one of the most power tools I use to measure overbought and oversold levels in indexes and sectors on the daily chart. While today we can pull up almost any charting package and get his indicators on our charts with only a few simple clicks this book contains the specific formulas for how to calculate these indicators. Inside the book there are even worksheets showing how he worked out the math with his own formula to get the indicator reading. It is amazing to think Wilder did this by hand in 1978 with no charting package, computer, or even an excel spreadsheet to use.
I got this book hoping to go to the source of my beloved RSI and get some insights from its creator. While I did not get much of a take away from this book on how to trade with it I did enjoy seeing its birth and the history lesson. Many others have taken up the reins and created systems and methodologies to use with all his indicators. This book was more of a explanation and showing how the calculation itself is done.
So this is a great book for a history lesson or if you need to program a charting package but most modern traders will be very familiar with most the basics found here about the indicators themselves. I have no regrets buying this book personally, I feel like I witnessed the birth of the RSI.
Fletcher Ponce (verified owner) –
Amazing book, best of the best. No world to describe the great work done by Welles Wilder.
Rebecca Franklin (verified owner) –
Certainly useful for discipline. Mathematically not always very clear. Stick to one of the systems proposed..if you like it.
Jaiden O’Neal (verified owner) –
A deep technical book describing some of the best time-tested trading tools for stocks and commodities.
Simon Hampton (verified owner) –
Mathematics applied to market trading. If you are a trader, you’ll appreciate these few concepts. Others know and use them so you’ll be at a disadvantage if you don’t.
Pablo Morrison (verified owner) –
The basic ideas of Wilder’s trading systems are well explained in a beautiful book. Not much time is spent on how and when to use the different systems.
Noe Villarreal (verified owner) –
Old school but still relevant!
Ford Silva (verified owner) –
Man is a genius
Alvaro Lowery (verified owner) –
This book provides a lot of information for those who REALLY want to study each one of his indicators. Not for those looking for a “easy” read.
Aileen Daniels (verified owner) –
I usually say J.W.W. is the father of mechanical trading or at least the guy that brought up the concept of it with this primordial work. This late 70’s work is undoubtedly the mark zero for many systems used nowadays and the cornerstone for a group of specific class of “indicators” to say the least. I came across this work for the first time many years ago in a private library of a brokerage house I used to work, I studied thoroughly back in the day but I couldn’t take it home with me so I decided that someday I would buy this book even though I’ve had read it already many times. Then many years later I bought it just to have it on my personal library and it’s where one copy seats today.
This was the first system that I could understand, use and have a math proof to back it up, I’m not saying that what’s in the book will be applied directly, what I’m saying is this book brings the concept of further developments. Mr. J. Welles Wilder is a guy, among others, that I would really have the pleasure to meet someday and I truly hope to have the opportunity to do so. Great work.
Elias Esquivel (verified owner) –
Wilder’s formulas are ground breaking. It’s exactly where I had to start with my own investment strategies…
Sevyn Montoya (verified owner) –
It’s a must have for traders and chartist.
Lucia Evans (verified owner) –
A classic. Whilst written in the early 70’s the indicators detailed within the book remain in extensive use by traders everywhere.
Jaylee Reilly (verified owner) –
Great book for learning a trading system that is understandable. I did not say easy to understand because some strategies work better for some people than others. It is NOT a new concept now since the book was written well before the Internet. There is an inherent advantage to using a strategy that is not in common usage.
Xander Norman (verified owner) –
Good to read about the indicators directly from the creator himself
Crosby Bonilla (verified owner) –
this book , will not in anyway improve your profit. you all coming for this.
Romina Lim (verified owner) –
Great info lots of details