Customer Reviews

Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis

5 star:		(9)
4 star:		(3)
3 star:		(3)
2 star:		(2)
1 star:		(1)

 

 

brilliant... introduces the concept of using moving averages on "momentum" indicators as opposed to the traditional moving average on price. Teaches how the concept of moving averages on "price" produces lag and then highlights the strengths of trading with momentum indicators by way of double smoothing. The best book I have seen on momentum trading .... bar none.

If you're a day trader with moderate success and an ability to tear apart the concepts, and Blau's basic examples, one or two of the indicators discussed could probably help you. If you're just wanting to learn more about momentum and/or double smoothed (practically any oscillating) indicators, or a neophyte, then this book is most likely over your head. The example "systems" that Blau expounds upon are a great basic start to good systems, and he tells you flat out that they're not complete, but just example-type systems. But I'll tell you this: The basic, incomplete systems in this book are a heck of a lot better than a huge majority of those "magic bullet" "get rich overnight" systems that cost three and more times the amount of this book! There is no magic bullet, but this book is a lot closer to making you into the magic bullet than most others.

If you're a beginner and don't have a powerhouse charting platform like e-Signal or TradeStation, I would suggest waiting to get this book (but definitely put it on your Wish List). If you already have the dedication, some experience, and something like e-Signal or TradeStation, then just fork out the money and get it. You should not be disappointed if you can actually read and apply information exactly as given, and are not expecting to receive that which does not exist, the magic bullet. Very strong foundation building book.

One more thing: Please don't expect that you will thoroughly understand the concepts with only one reading. The ideas Blau presents are fairly advanced (high intermediate level) and do take some personal evaluation, which will take time. I believe that this is a book that you will want to read at least once a month for the first six months, then at least once a year thereafter.

This is probably one of the best book I have seen in Technical Analysis. Blau explains clearly in simple English how 'Momentum and Direction' works. Divergence is little tough to understand, overall I think. I would recommend this to anyone who wants to understand Momentum/Direction.

OK where did my previous review of this book go? I wrote it months ago was it lost?

Can't be bothered writing the whole thing again, so in summary: it is an excellent book, picks a main concept of smoothing and constructs some excellent indicators, and many different ones, has great ideas, inspires great ideas, has code / formulas you name it, extremely worthwhile for anyone who is serious and capable of putting these things into use.

That means constructing them and understanding them.

Some reviewers seem disappointed ... I suspect some people think "momentum" is some magic bullet that will get them into a stock before it moves, other reviewers are arguing definitions, all I can say is that when I first got hold of this book I took a look and did not really like it, but after working my way through it found it to be truly a gem.

Very worthwhile.

And where did my previous review go? grrrr

This is a no nonsense book by a true professional for traders who use momentum oscillators. I've successfully used Blau's oscillators for several years; one is the best I've found--period (and I won't disclose which one!!). He ranks with the best and seems not to be recognized. TradeStation code is included.

A fascinating and practical book. Some of Blau's systems can be immediately applied to whatever type of trading system you are currently using. I especially enjoyed his discussion of filtering techniques, which reduce false indications in areas of price congestion. Blau presents this information is a very clear, concise way than can easily be understood by almost anyone. I'm very impressed.

If I had to pick one characteristic of the book that I did not like, it would be that it was too short. It would have been helpful to include more backtesting data, and maybe some more chart analysis. The end seems to leave the reader wanting more. A truly great read for the trading hobbyist or professional!

Ok, in the introduction to this book the author states this book is about price change and utilizing double smoothing as a means of determining entry and exit points. So, for the previous two reviewers, did you not read the intro, or the rest of the book? First, this is an intro into the subject and the use of EMAs is a common method (and he in fact discussed the lag inherent in this and other methods). Second, the book never purports to be about reading price patterns, it is about price change and the use of double smoothing so of course indicators will be its focus, indicators are a powerful (not sole) tool in many traders toolboxes. With that said, the author guides you through the True Strength Index, Stochastics, Tick Volume, Directional Trending - he includes their calculations and the Easylanguage Code for everything discussed in the book. That is something I like because some books, like Strategies for the Electronic Futures Trader by Bernstein do not include code and the systems are once again for the novice. The charts he displays are all daily charts so it is not even geared for the intraday trader if that is what you are after, but they do in many cases contain several subgraphs so you can compare the difference between the various indicators and their tendencies. The author also states clearly that these tools and the examples are not meant to be trading systems by themselves, so there are no black boxes here. Just ideas, so if you are looking for a new look at momentum or want to try something new with your own indicators this might be a nice book. I was able to pull a couple of ideas out that I am incorporating into my trading to better transition from trending to congestion (a large focus of the book). However, I checked this out of the library and it was worth the gas to pick it up, but would I have paid 40 bucks, now that I don't know. As for the reason I only gave it three stars is mainly for content, this is an ideas book, not anything more, and for its size I feel that to be a good rating.

This book is a small volume. And very potent one at that. Along with Tom Demark's Duration Analysis, Blau's Slope Divergence concept is one of the brilliant ways to look at the market. This book should be studied thoroughly by ALL market technicians.

Ok, in the introduction to this book the author states this book is about price change and utilizing double smoothing as a means of determining entry and exit points. So, for the previous two reviewers, did you not read the intro, or the rest of the book? First, this is an intro into the subject and the use of EMAs is a common method (and he in fact discussed the lag inherent in this and other methods). Second, the book never purports to be about reading price patterns, it is about price change and the use of double smoothing so of course indicators will be its focus, indicators are a powerful (not sole) tool in many traders toolboxes. With that said, the author guides you through the True Strength Index, Stochastics, Tick Volume, Directional Trending - he includes their calculations and the Easylanguage Code for everything discussed in the book. That is something I like because some books, like Strategies for the Electronic Futures Trader by Bernstein do not include code and the systems are once again for the novice. The charts he displays are all daily charts so it is not even geared for the intraday trader if that is what you are after, but they do in many cases contain several subgraphs so you can compare the difference between the various indicators and their tendencies. The author also states clearly that these tools and the examples are not meant to be trading systems by themselves, so there are no black boxes here. Just ideas, so if you are looking for a new look at momentum or want to try something new with your own indicators this might be a nice book. I was able to pull a couple of ideas out that I am incorporating into my trading to better transition from trending to congestion (a large focus of the book). However, I checked this out of the library and it was worth the gas to pick it up, but would I have paid 40 bucks, now that I don't know. As for the reason I only gave it three stars is mainly for content, this is an ideas book, not anything more, and for its size I feel that to be a good rating.

Very concise and to the point in covering what momentum is and how to use the tool of double smoothed averaging to smooth noise without lag. Essentially, that's the one main idea and the book takes it through a number of different flavors of implementation. The one confusion I had with the organization of the book is that the chapters are not explicitly related to one another using introductory and concluding review paragraphs. It reads like a series of independent smaller articles (which maybe it was from Technical Analysis of Stocks and Commodities). On the plus side, it's very short and a quick study.

I use Metastock and although the formulas are in Tradestation-speak, I did not have trouble converting them. Email me if you want them - irosenthal@yahoo.com.