Martin Pring on Market Momentum [Paperback]

Martin J. Pring (Author), Pring (Author)

Book Description

Publication Date: May 1, 1997

Become an "instant expert" in the use of popular technical studies and indicators which are on technical analysis software, such as McClellan Oscillator, Stochastics, MACD, RSI, Parabolics, CCI, and many others. This is the first comprehensive book on momentum destined to become the definitive guide to effective and proper use of Momentum destined to become the definitive guide to effective and proper use of Momentum studies and indicators. Examines the principles underlying Market Momentum and discusses the advantages and disadvantages of oscillators, how they are computed, and offers much insight into their proper and effective usage. "This Book Will Teach You, In Easily Understood, And Easily Utilized Terms": Characteristics of overbought and oversold markets -- Trend analysis using momentum indicators -- How to become an "instant expert" in the use and interpretation of Stochastics, RSI, MACD, and many other indicators -- Pros and Cons of all major oscillators. How to use technical studies and indicators effectively in your trading.

Editorial Reviews

Review

"Eureka! There's gold in these here pages! I have seldom been as excited about a new book. For many years there has been an urgent need for this very book, and at last, here it is! Essentially, it is a full-length, in-depth treatment of the majority of the technical studies and indicators that are included in virtually all stock and futures analytical software programs. This book... is the definitive guide, in my opinion. Market momentum is covered "from A to Z." It begins with a primer on the basic principles that apply to all momentum indicators. Overbought/oversold conditions, divergences (both elementary and complex), advance breakdowns and breakouts, are all covered in detail. Combining momentum with trendlines, moving averages, price patterns, and peak/trough analysis complete the basic survey. I give this book my highest recommendation (to the appropriate audience). It will prove equally valuable to traders of stocks or futures." -- ED DOBSON, President of Trader's Press

"Understanding market momentum is one of the most basic secrets to successful trading, and one concept that I would recommend every novice trader to master. Martin Pring explains in a clear and straightforward fashion not only momentum but a host of popular indicators; in addition, the reader will gain insight from the way that the veteran analyst and money manager applies those techniques." --Thom Hartle, editor of Technical Analysis of Stocks & Commodities --This text refers to an out of print or unavailable edition of this title.

From the Back Cover

"Given the crucial role that momentum plays in technical market analysis, Martin Pring on Market Momentum is particularly timely and informative. Pring covers all of the popular price momentun tools (Relative Strength Index, Stochastics, Moving Average Convergence/Divergence) as well as measures of volume and breadth (McClellan Oscillator and Summation Index, The Arms Index). He provides an excellent description of the Parabolic and Directional Movement Systems, which are invaluable in determining whether to utilize momentum or trend-following approaches. Finally, he throws in some original ideas of his own with his KST indicator. Pring's many fans will want to add this volume to their collection of his other fine books. Readers unfamiliar with Pring's work can use this book to begin their acquaintance with this outstanding technical writer." JOHN J. MURPHY, author of Technical Analysis of the Futures Markets and Intermarket Technical Analysis, and technical analyst for CNBC-TV. "Understanding market momentum is one of the most basic secrets to successful trading, and one concept that I would recommend every novice trader to master. Martin Pring explains in a clear and straightforward fashion not only momentum but a host of popular indicators; in addition, the reader will gain insight from the way that the veteran analyst and money manager applies those techniques." THOM HARTLE, editor of Technical Analysis of Stocks & Commodities. "Eureka! There's gold in these here pages! I have seldom been as excited about a new book. For many years there has been an urgent need for this very book, and at last, here it is! Essentially, it is a full-length, in-depth treatment of the majority of the technical studies and indicators that are included in virtually all stock and futures analytical software programs. This book... is the definitive guide, in my opinion. Market momentum is covered "from A to Z." It begins with a primer on the basic principles that apply to all momentum indicators. Overbought/oversold conditions, divergences (both elementary and complex), advance breakdowns and breakouts, are all covered in detail. Combining momentum with trendlines, moving averages, price patterns, and peak/trough analysis complete the basic survey. I give this book my highest recommendation (to the appropriate audience). It will prove equally valuable to traders of stocks or futures." ED DOBSON, President of Trader's Press.

See all Editorial Reviews

Product Details

• Paperback: 368 pages
• Publisher: McGraw-Hill Companies (May 1, 1997)
• Language: English
• ISBN-10: 0786311762
• ISBN-13: 978-0786311767
• Product Dimensions: 10 x 6.9 x 0.8 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 3.5 out of 5 stars  See all reviews (10 customer reviews)
• Amazon Best Sellers Rank: #996,740 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

28 of 30 people found the following review helpful:

5.0 out of 5 stars Excellent Momentum Indicator Book, June 7, 1998

By A Customer

This review is from: Martin Pring on Market Momentum (Paperback)

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.

15 of 16 people found the following review helpful:

5.0 out of 5 stars Superb book on Momentum, June 12, 2001

By A Customer

This review is from: Martin Pring on Market Momentum (Hardcover)

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!!

11 of 12 people found the following review helpful:

5.0 out of 5 stars I actually need another copy I've used this so much..., April 30, 2004

By 

Rob Ryley "Robert" (Northeast NJ) - See all my reviews
(VINE VOICE)   

This review is from: Martin Pring on Market Momentum (Paperback)

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, but
Pring 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.