Austrian School and Trend Following

Feedback in:

Mr. Covel, I am currently reading “Capital and Its Structure” by Ludwig Lachmann. Lachmann was an Austrian School economist who studied under Hayek at LSE in the 1930s. This book is one of the seminal works on Austrian capital theory. Towards the end of the second chapter, Lachmann develops the concept of “meaningful” and “meaningless” price movements and links them to random and permanent economic forces. He then gives an example. Lachmann’s treatment of his idea in the example is essentially a Nicholas Darvas box theory, breakout, trend following description of price movements in the economy. Lachmann is not referring to stock or commodity prices per say, but upon reading his example I immediately linked it with trend following. The relevant passage can be found here, starting on p. 30 (p. 40 of the PDF version of the book).
Augustus Van Dusen

Nice find!