Interview: Market Data Insights With John Ehlers by Karl Montevirgen
John F. Ehlers is a market technician with a specialty in the study of market data and cycles, as well as using that data more effectively to develop trading strategies. In the early 1980s, around the same time this magazine was launched, he was pioneering new ways to accurately measure market cycles using engineering techniques discovered during his time as a Senior Engineering Fellow with Raytheon and during his work on various special projects including SkyLab. In his current work he continues to research and refine ways to see market data and to use market cycles for trading.
Ehlers is president of MESA Software and cofounder of StockSpotter.com and BeYourOwnHedgeFund.com. MESA Software offers algorithmic trading strategies that adapt to different markets and market conditions by dynamically tuning the strategy using cycle measurements.
A Contributing Editor to this magazine, he has contributed more than 80 articles to STOCKS & COMMODITIES since 1983. Across this large body of work, he has presented breakthrough research; new indicators, ﬁlters, and analysis techniques; and methods to gain earlier trading signals.
Books written by Ehlers include Rocket Science For Traders, MESA And Trading Market Cycles, and most recently, Cycle Analytics For Traders. He has been a speaker at many conferences and seminars on topics related to market cycles and trading strategy development, and he offers his own annual seminar to share some of his life’s work on analyzing the markets with other traders.
S&C Contributor Karl Montevirgen spoke with John Ehlers on July 3, 2019 to explore some of the technical concepts behind his work and why those concepts are important to trading strategy development.
John, how long have you been working with market cycles and waveforms? And what inspired you to focus on this very particular approach to market analysis?
Well, we started in the mid-1970s. The reason I got into trading was I got a bonus, and my choices were either to invest in real estate or to trade commodities. And I didn’t want to be a landlord and ﬁx toilets in the middle of the night ...