Market Momentum: Trend Determination and Advanced Technical Analysis is another renowned book by Martin Pring. As one of the leading figures in technical analysis, Pring uses this book to provide in-depth insights into market momentum, one of the key concepts in this field.
The book outlines the fundamental principles of market momentum, why it matters, and how it can be measured and interpreted. Here, market momentum refers to the rate of acceleration of a security’s price or volume – in other words, the speed at which the price is changing.
Pring elaborates on a variety of momentum-based indicators, such as the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Stochastics, among others. He explores how these indicators can be used to better understand the underlying trend in a market and to generate buy and sell signals.
Moreover, Pring dedicates substantial attention to the role of trend determination in technical analysis. He discusses different types of trends (upward, downward, and sideways), how they can be identified, and what they imply for traders and investors.
“Market Momentum” is appreciated for its clear, concise explanations and practical examples. As with all of Pring’s books, it is written with both novices and seasoned traders in mind, providing valuable insights regardless of one’s level of experience in the field.
Again, it’s important to remember that, while understanding market momentum can improve your trading strategies, it’s not a guarantee of success and should be used in conjunction with other analytical tools and risk management techniques.