Technical Analysis: Power Tools for Active Investors [Hardcover]

Gerald Appel (Author)

Book Description

ISBN-10: 0131479024 | ISBN-13: 978-0131479029 | Publication Date: March 31, 2005

Unlike most technical analysis books, Gerald Appel's Practical Power Tools! offers step-by-step instructions virtually any investor can use to achieve breakthrough success in the market. Appel illuminates a wide range of strategies and timing models, demystifying even advanced technical analysis the first time. Among the models he covers: NASDAQ/NYSE Relative Strength, 3-5 Year Treasury Notes, Triple Momentum, Seasonality, Breadth-Thrust Impulse, and models based on the revolutionary MACD techniques he personally invented. Appel covers momentum and trend of price movement, time and calendar cycles, predictive chart patterns, relative strength, analysis of internal vs. external markets, market breadth, moving averages, trading channels, overbought/oversold indicators, Trin, VIX, major term buy signals, major term sell signals, moving average trading channels, stock market synergy, and much more. He presents techniques for short-, intermediate-, and long-term investors, and even for mutual fund investors.

Editorial Reviews

Review

FROM STOCK TRADER'S ALMANAC 2006:

 

"The best investment book of the year"

 

FROM SFO MAGAZINE, (www.sfomag.com)

 

"Wisdom gained from three decades of studying stock markets and creating timing indicators is what you will find in Gerald Appel's latest book. ... This book is a master technician's superb source of well-crafted ideas for timing indicators."

                                            --George A. Schade, CMT

            

About the Author

About the Author

Gerald Appel has, since 1973, published Systems and Forecasts, a leading technical analysis publication. Appel is legendary for his work in technical analysis and market timing, including the creation of Moving Average Convergence-Divergence (MACD), one of the field's most widely used tools. His numerous books include, among others, Winning Market Systems: 83 Ways to Beat the Market, Stock Market Trading Systems (with Fred Hitschler), New Directions in Technical Analysis (with Dr. Martin Zweig), The Big Move, and Time-Trend III. His company, Signalert Corporation, and affiliates, currently manages more than $550,000,000 in investor capital. Appel has trained thousands of traders through his world-renowned video and audio tapes, seminars, and workbooks. He recently taught a series of four-day international master classes on investing and trading strategies in partnership with Dr. Alex Elder. As Appel puts it, "I have never lost anything by giving ideas away. If people find it useful, it makes me feel good."

© Copyright Pearson Education. All rights reserved.

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Product Details

Chapter 1 of Technical Analysis [PDF]

• Hardcover: 264 pages
• Publisher: FT Press (March 31, 2005)
• Language: English
• ISBN-10: 0131479024
• ISBN-13: 978-0131479029
• Product Dimensions: 9.5 x 7.2 x 0.9 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.9 out of 5 stars  See all reviews (18 customer reviews)
• Amazon Best Sellers Rank: #504,247 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

30 of 30 people found the following review helpful:

5.0 out of 5 stars 30 years of wisdom in one setting, July 9, 2005

By 

Robert Kargenian (Orange, CA USA) - See all my reviews
(REAL NAME)   

This review is from: Technical Analysis: Power Tools for Active Investors (Hardcover)

For novices interested in technical analysis, there is so much material here it might seem overwhelming. But believe me, the effort at exploration is worth it. I've been successfully applying Appel's work since 1984, and this all-encompassing treatise was like looking over his shoulder, soaking in his 30 years of wisdom on the markets.

I was especially interested in the section on the relative strength comparing the performance of the NYSE to the NASDAQ. This area of the book alone is worth the price of admission.

Professionals in the field are likely to be familiar with most concepts in the book. But over the years, I've found many misapply the use of MACD, an excellent indicator Appel invented which has become a staple in technical analysis. All would be advised to read how Appel uses his own invention.

There's something for everyone in this book, novice and professional alike. Few have contributed more to technical studies and money management than Gerald Appel. Don't just put this on your bookshelf--read it, use it and learn from it. It will make you a better investor and trader.

68 of 76 people found the following review helpful:

3.0 out of 5 stars A rehash of old stuff!, May 29, 2005

By 

Steven Phillips (Ada, OK United States) - See all my reviews
(VINE VOICE)    (REAL NAME)   

Amazon Verified Purchase

This review is from: Technical Analysis: Power Tools for Active Investors (Hardcover)

If you are familiar with this author's previous works you will find very little in this book which is new. He discussed the "new low" filter and the several variants of his original MACD indicator more than twenty years ago. MACD was then, and is now, a lagging indicator with dubious utility.

The research that the author cares to share with the book's purchaser is largely stale-dated or inaccurate. For example, where Appel discusses a non-original indicator, such as VIX, he states that it gives only long-term indications and that it has not yet been determined how to use this working tool for shorter-term indications. In fact, VIX is one of the better intermediate-term working tools - you can prove this for yourself! Go to stockcharts.com, run a weekly Sharp-chart of $VIX with a five week RSI. This 5 week RSI indicates bottoms in the weekly $SPX at readings in excess of 60, and tops in the $SPX at readings of 40 or below. Run a comparable chart for the $SPX and compare the weekly swing highs and lows with the 5 week RSI readings on the $VIX. You will find a quite good correlation! (Also, the weekly new low indicator can be used in the same manner to test for market bottoms - simply construct a 5 week RSI and see how well the market bottoms are pointed-out at readings in excess of 60.)

It is somewhat amazing to me how some authors repackage old stuff, which was only moderately useful when it was new, and sell it long after the point of diminishing returns has been passed. This is an OK book for someone just starting out in the markets - but I feel that there are many better ones available, such as by authors, John Murphy, Alexander Elder, and Van Tharp.

27 of 28 people found the following review helpful:

4.0 out of 5 stars A good TA "and" trading book for relatively advanced players, January 11, 2007

By 

ServantofGod - See all my reviews

This review is from: Technical Analysis: Power Tools for Active Investors (Hardcover)

I am a mechanical trader using primarily trendline, MACD and Stochastics. That explains why I immediately picked this book up when the tagline "Inventor of MACD" on the front cover entered my eyes. Out of expectation, this book had only one (out of ten) chapter on MACD (but I did learn that the author used 6-19 and 19-39 other than 12-26 as parameters). The rest were on volume, moving average, oscillator type TA tools, plus strategies on fund selection and switching, and trading on seasonal+cyclical factors (Chapter 5 which I like the most, that he explained with solid data why the Nov-Jan period, the pre-election year etc are the best time to enter the market). As a trading book, this is relatively compleat and helpful, though I admit I am biased for my respect to the author. In short, recommended, particularly for those with certain trading experience + TA knowledge and want to acquire more for an edge.

p.s. As a VAS to you and a support to my review above, below pleaes find a summary of "Lessons I (the author) have learned during 40 years as a trader" in the last chapter.

- The news media tend to be the last to know and almost always tend to follow stock market trends rather than to lead them.
- There might be many benefits in attending lectures, meetings....but it is probably best to operate alone.
- It is best to keep your results and performance private.
- Human nature operate against good trading practices. Traders often tend to close out their strongest positions too early and maintain their weakest positions for too long.
- The name of the game is to make a good (but not unreasonable) return for your time and capital, not to feel smart.
- Dont confuse rising stock prices with being a financial genius.
- In-and-out trading will not be as profitable as well considered intermediate term trading.
- It is better to miss a profit than to take a loss.
- It is probably best not to operate at the market opening.
- Do not enter into an invested position without an exit plan
- It is much better to trade with no more capital than you can comfortably risk.
- Three consecutive successful trades makes us feel like a genius. That's when they get us.....
- Make note of some losing transactions....The stock market, at best, is a game of probabilities.
- Be free to simply stand aside until matters clarify.