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 mathematics:
* 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 Blau:
* 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.
WILLIAM BLAU is a trader with expertise in momentum indicators andtheir applications. His articles have appeared in TechnicalAnalysis of Stocks and Commodities, and he was a speaker on the DowJones/Telerate 1993 World Tour. Prior to becoming a trader, hefounded his own engineering firm, specializing in technicalconsulting for government, industry, and manufacturing prototypesand small production run machines. William Blau holds a bachelor'sdegree in electrical engineering from NYU and a master's in systemsengineering and operations research from the University ofPennsylvania.
About the Series Editor: PERRY J. KAUFMAN has been designing anddeveloping trading strategies and hedge and arbitrage programs inderivatives markets since 1970. He is the author of six books, including The New Commodity Trading Systems and Methods and SmarterTrading. Mr. Kaufman is part of Kaufman Diamond & Yeong, aninternational consulting firm with offices in Vermont, Chicago, andSingapore.
