Martin Pring on Market Momentum

I would highly recommend reading this book it will help you a lot in your technical analysis career. There weren't any new copies I had to order a used one after hearing about it from a friend.

Readers of reviews on financial books need to be careful. For every 100 people who speculate in the financial markets, less than 10 are successful. People often have psychological blindspots that prevent them from noticing profitable info when they see it. I'm convinced that blindspot applies not only to the market, but books about profiting in the market.Despite my skepticism, I had decided to study technical analysis after reading Larry McMillian's advice in Options as a Strategic Investment. Pring's book on Momentum was one of my first purchases. Combined with observation of market action using my TC2000 software, I'd say it is one of my best purchases. And that was over 4 years ago.This isn't easy reading. It requires you to--THINK! Imagine that! Those who are looking for wealth through trading and investing expect the process to be easy. When they discover it isn't, they blame authors for writing accuarte, but difficult books, rather than changing their ideas about profiting from the market.Other books cover momentum indicators in brief detail, butPring devotes significant space to principles of momentum interpretation, as well as how different indicators are constructed. Of crucial importance is the pros and cons of the construction of various indicators: Momentum or Rate of Change vs RSI, MACD vs Stochastics. After reading this, you will learn which indicators complement each other, and which ones are simply different variations of the same idea.Unfortunately, as Pring instructs, interpreting momentum indicators requires practice as well as judgement. Knowing how to interpret momentum doesn't mean you can trade eaily. There is much more to trading than understanding momentum indicators. Read this book, THINK about the logic of the indicators, then observe the market action using what you have learned. In due time, you will use the ideas in this book to develop your own indicators, improving on the ideas in this book to suit your own style.

You will find the KST formula in Chapter 7 on page 159. This is not a book on day trading. It is a book on momentum. It can be applied to all time frames like daily, weekly, and monthly. For day trading, you need to read a lot more books on day trading to prepare for that task. The KST is a superb indicator. It allows you to zero in on the maintrend. You know the addage, the trend is your frend. KST will show you if the trend is your frend before you put on your trade. Most traders who lose money trade against the main trend. With KST, you can make sure you are trading with the trend. Mr. Pring does a superb job in a layman language as to how to interpret and use momentum. No other author does as a good job and most books will mislead you and cost you big losses as a result. Martin has it all when it comes to momentum!!

This book is intended for traders who already have some understanding of technical analysis. Also, a stock charting program, such as MetaStock, is recommended. Although it is possible to manually calculate formulas or even use a spreadsheet, the sheer volume of data involved and the number of possible equational variations would severely limit a trader's ability to compete.Pring mentions the MetaStock program several times. This book was written in 1993 when stock charting programs were limited and the fastest Windows compatible computer was a 486/66. Now that personal computer speed, capacity, software, and data gathering are no longer a hindrance, the methods described are particularly relevant. As a MetaStock v6.5 user I can tell you all of the indicators mentioned are available or can be created, with the exception of a few diffusion indicators, in MetaStock.Pring shows you how to interpret momentum indicators and even how to adjust them in ways you previously would not have thought of. After reading this book I now have a deeper understanding of the most commonly used momentum indicators. Additionally, I can now use MetaStock in much more sophisticated ways.Although the book has some minor errors, I recommend it to anyone who uses technical analysis software. This book is for traders who use end-of-day or real-time data and want to attain an intermediate skill level for momentum indicators. I also recommend Pring's Technical Analysis Explained. If you are not familiar with TA begin with either this book or John Murphy's Technical Analysis of the Futures Markets. Both provide a complete overview of most types of technical analysis. Moreover, they cover chart patterns, a prerequisite for understanding Market Momentum.

The book is very well written and very well organized. Very easy to understand and cover TA from A-Z. It is the ultimate book on momentum for the serious trader. It covers momentum indepth without the use of fancy mathematical formula that serves no use beside confusing the reader and making you feel the formula is worth something! I should know since I have tutored all math courses at a college level. Years later authors confirm Mr. Pring teachings from practical experiance and huge losses.