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 Here's the definitive, in-depth guide to the study and interpretation of oscillators and technical studies commonly found in most technical analysis software packages. Look no further if you want an intelligent, insightful and educational treatment of just about any topic related to this particular aspect of technical analysis.
This
book by Martin Pring, one of the most widely respected
names in the field of technical analysis for many years,
is not just confined to a thorough examination of momentum
and associated concepts; it goes far beyond that and is
far more comprehensive than the title would suggest. Many
other books on technical analysis provide only limited
coverage of the topics covered in this book; this one
goes deeper in its discussion of each one.
The user manuals that come with most technical analysis software give the reader only the basic idea behind each technical study, and some understanding of how it is calculated, but offer virtually no guidance on proper usage or interpretation. How to use the study most effectively to make trading decisions and how to use it in combination with other studies are topics typically ignored. Pring’s book, on the other hand, takes over where the manual usually leaves off, providing extensive guidance in the areas ignored in manuals.
This book is best suited for those who already have a basic education and background in technical analysis because it assumes an existing knowledge of trendlines, chart patterns, and the like. For those already familiar with momentum studies and technical indicators, but thirsting for more in-depth knowledge, this book will prove to be a valuable source of information and knowledge.
The concept of momentum is covered “from A to Z”, as the title would imply, starting off with a primer on the basic principles that apply to all momentum-based indicators. He covers in detail overbought-oversold conditions, divergences (both elementary and complex), advance breakdowns and breakouts and many other topics of great interest to technical analysts. Combining momentum with trendlines, moving averages, price patterns and peak / trough analysis complete the basic survey.
Several major technical studies are each accorded a full-length chapter. Included are Relative Strength Index (RSI), Moving Average Convergence-Divergence (MACD), Rate of Change, Stochastics, Parabolics, Commodity Selection Index and Directional Movement (ADX). Traders seeking more in-depth knowledge of these studies will find a gold mine here.
Among other indicators covered are the Herrick Payoff Index, Demand Index, Williams %R, the Commodity Channel Index, TRIX and the Ultimate Oscillator. Pring also discusses his own proprietary KST System (which, I have been told, is a highly effective market timing system), volume momentum indicators, the McClellan Oscillator and the Arms Index (TRIN).
For each of these studies, Pring provides complete information on calculation, interpretation, original source and history, evaluation of effectiveness and his expert commentary on usage. This 340-page book is literally filled with charts and graphs that effectively present every concept he discusses.
While this book was published a number of years ago and has gone out of print, the concepts are timeless and are just as relevant now as when the book was first written. Not generally available elsewhere, this book is available through Traders Press.
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