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Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis
A guide to the latest, most promising technical indicators andtheir applications
Momentum, direction, and divergence are the three basic componentsof nearly all technical indicators used in the analysis of stockand commodities trading. And for those who understand them andtheir applications, they are also the pillars of a high-performancetrading strategy. In this groundbreaking book, technical wizardWilliam Blau schools financial professionals in all three.Combining the latest financial information with dozens ofeye-opening graphics, Blau clearly, concisely, and with a minimumof complex
* Introduces the principle of double smoothing and develops potentnew indicators based on double smoothing techniques
* Describes the uses and limitations of a variety of notabletechnical indicators
* Explains momentum, direction, and divergence and new ways toapply them
* Presents the True Strength Index and shows how it candramatically improve most directional indicators
* Provides new ways of identifying divergence that makeimplementation far simpler than ever before
MOMENTUM, DIRECTION, AND DIVERGENCE
The Wiley Trader's Advantage is a series of concise, highly focusedbooks designed to keep savvy traders in tune with the latestsuccessful strategies and techniques used by the keenest minds inthe business.
In this latest volume, technical expert Bill Blau shows you howmomentum, direction, and divergence form the basis of mosttechnical indicators and how they can work for you to provide aconsiderable competitive advantage. Clearly, concisely, and with aminimum of complex mathematics, Blau shows you how to understandand apply them. Integrating the latest financial insights with morethan 75 easy-to-follow graphics, Blau describes the uses andlimitations of many of today's most notable technical indicators.He then demonstrates a variety of ways in which the principles ofmomentum, direction, and divergence can be used to create aversatile new set of technical indicators or to improve theeffectiveness of the most widely used traditional indicators.
Focusing on the groundbreaking double smoothing concept, which heintroduces for the first time in this book, William
* Develops reliable new momentum indicators based on doublesmoothing techniques
* Shows how these indicators improve the effectiveness of mostpopular oscillators, including the RSI, MACD, and stochasticindicators, by solving a host of timing problems
* Combines the standard Welles Wilder techniques with his originalTrue Strength Index to improve the effectiveness of mostdirectional movement indicators
* Introduces new ways of identifying divergence that makeimplementation simpler than ever
* And much more
A complete guide to the most potent new indicators and theirapplications, Momentum, Direction, and Divergence is anindispensable resource for traders, portfolio managers, and allfinancial professionals.
Momentum, direction, and divergence are the three basic componentsof nearly all technical indicators used in the analysis of stockand commodities trading. And for those who understand them andtheir applications, they are also the pillars of a high-performancetrading strategy. In this groundbreaking book, technical wizardWilliam Blau schools financial professionals in all three.Combining the latest financial information with dozens ofeye-opening graphics, Blau clearly, concisely, and with a minimumof complex
* Introduces the principle of double smoothing and develops potentnew indicators based on double smoothing techniques
* Describes the uses and limitations of a variety of notabletechnical indicators
* Explains momentum, direction, and divergence and new ways toapply them
* Presents the True Strength Index and shows how it candramatically improve most directional indicators
* Provides new ways of identifying divergence that makeimplementation far simpler than ever before
MOMENTUM, DIRECTION, AND DIVERGENCE
The Wiley Trader's Advantage is a series of concise, highly focusedbooks designed to keep savvy traders in tune with the latestsuccessful strategies and techniques used by the keenest minds inthe business.
In this latest volume, technical expert Bill Blau shows you howmomentum, direction, and divergence form the basis of mosttechnical indicators and how they can work for you to provide aconsiderable competitive advantage. Clearly, concisely, and with aminimum of complex mathematics, Blau shows you how to understandand apply them. Integrating the latest financial insights with morethan 75 easy-to-follow graphics, Blau describes the uses andlimitations of many of today's most notable technical indicators.He then demonstrates a variety of ways in which the principles ofmomentum, direction, and divergence can be used to create aversatile new set of technical indicators or to improve theeffectiveness of the most widely used traditional indicators.
Focusing on the groundbreaking double smoothing concept, which heintroduces for the first time in this book, William
* Develops reliable new momentum indicators based on doublesmoothing techniques
* Shows how these indicators improve the effectiveness of mostpopular oscillators, including the RSI, MACD, and stochasticindicators, by solving a host of timing problems
* Combines the standard Welles Wilder techniques with his originalTrue Strength Index to improve the effectiveness of mostdirectional movement indicators
* Introduces new ways of identifying divergence that makeimplementation simpler than ever
* And much more
A complete guide to the most potent new indicators and theirapplications, Momentum, Direction, and Divergence is anindispensable resource for traders, portfolio managers, and allfinancial professionals.
142 pages, Hardcover
First published March 6, 1995
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Displaying 1 - 3 of 3 reviews
May 27, 2023
Momentum, Direction, and Divergence came quite highly recommended from financial twitter. But the book is nothing special – it is a collection of momentum indicators and technical analysis methods. The methods weren’t particularly well explained, nor was there much insight conveyed. Anyway, in my experience (notably I am not a trend-following quant so this experience is quite limited), having so many different indicators, each with their own hyperparameters, is a recipe for an overfitting disaster.
All of the value I got from the book was in the first two chapters, which contain genuinely good insights into the properties of moving average filters – this is what has brought the book to a 2-star read. For example, by thinking of moving averages as convolutions, we can reason about the types of trends that a particular moving average window or kernel will be most sensitive to.
All of the value I got from the book was in the first two chapters, which contain genuinely good insights into the properties of moving average filters – this is what has brought the book to a 2-star read. For example, by thinking of moving averages as convolutions, we can reason about the types of trends that a particular moving average window or kernel will be most sensitive to.
June 20, 2019
Awesome book, really helpful
September 5, 2024
The stochastic momentum index indicator detailed in this book is one of mankind's greatest contributions to Technical Analysis.
Displaying 1 - 3 of 3 reviews