The Three Secrets to Trading Momentum indicators PDF

The Three Secrets to Trading Momentum indicators PDF

The Three Secrets to Trading Momentum indicators PDF shows you three secrets that allow you to capitalize on the power of momentum indicators. Momentum indicators are excellent for getting on the right side of the trend and spotting the reversal before it happens. With a mastery of momentum, traders can put this predictability to work making them money.

Category: Technical Analysis

Author: David Penn 

Language: English

Free Download link: At the end of the post

Introduction- The Three Secrets to Trading Momentum indicators PDF

You can’t predict the future, but if you see a car going 100 miles an hour toward a picket fence, you have a pretty good idea. In trading, this concept is called momentum and it is one of the most widely used factors in creating effective, profitable technical indicators.

Penn shows you three secrets that allow you to capitalize on the power of momentum indicators. Momentum indicators are excellent for getting on the right side of the trend and spotting the reversal before it happens. With a mastery of momentum, traders can put this predictability to work making them money.

_________

I’ve started writing this book more times than I care to remember. And that’s probably because it took me awhile to fully realize what it was I wanted to say about technical analysis in general, and momentum indicators specifically.

There are three things about technical analysis and momentum indicators that many traders either are not aware of, or continue to ignore. These three “secrets” of momentum indicators are what this book is all about. In some ways, these three secrets will support conventional wisdom about price action, momentum, and technical trading. In other ways, I think these secrets will come as a surprise to many market technicians—and will be a worthwhile introduction for newcomers.

In either event, my hope is that by revealing and discussing these secrets, the average chartist and trader will be able to make better use of momentum indicators and become a more confident and profitable market technician.

Here are the three secrets of momentum indicators:

1. The best indicator of momentum is price action. And the best way to read price action is by way of Japanese candlestick charting.

2. Some of the most popular momentum indicators—such as the stochastic oscillator—are far more effective when used differently from the way most traders use them.

3. “Trend sensitive” indicators such as moving average trios, the moving average convergence-divergence histogram (MACDH) indicator, and the triple-smoothed exponential moving average (TRIX) are among the most valuable tools for the momentum technician.

These are the three secrets that this book will share. I will also spend some time talking about the origins of momentum indicators like rate of change, as well as how some of the standard momentum indicators such as the Relative Strength Index (RSI) are traditionally used.

Most of the book, however, will be spent on the above three secrets that can help momentum technicians make the most out of the momentum trading opportunities that develop every day, every hour, and every minute in the financial markets—from stocks and bonds to futures and international currencies.

David Penn 

Table of contents- The Three Secrets to Trading Momentum indicators PDF

Preface
Introduction
Chapter 1: History of Momentum Indicators

What are Technical Indicators
and Oscillators?
What is the Difference
Between Trend and
Momentum Indicators?
A Brief History of
Momentum Indicators

Chapter 2: Markets and Momentum
Breakout Trading
Swing Trading
Reversal Trading
Using Momentum Indicators
Momentum, Methods,
and Systems

Chapter 3: Introduction
to Japanese Candlesticks
How Do Candlesticks Work?

Chapter 4: Japanese Candlestick Patterns
Basic Single Line
Candlesticks
Single Line Patterns
Multiple Line Patterns
Trading with Candlesticks

Chapter 5: Price and Patterns
The 2B Test
Channel Breakouts
and Breakdowns
Triangles
Pennants and Flags

Chapter 6: Stochastics— Kings of Momentum
Crossovers
Divergences
The Hinge, the Hook
BOSO: A Better Way?

Chapter 7: RSI—Momentum’s Problem Child
Divergences
Failure Swings
Chande’s Critique and StochRSI

Chapter 8: MACDH

Chapter 9: Moving Average Trios

Chapter 10: TRIX
Hutson’s TRIX
Conclusion
Bibliography

Reviews

“Short, no fluff, and to the point. Different ways of using Stocastics, StochRSI, moving averages, TRIX, and MACD Hisogram. Good reference section also.” Daniel Wu

“Have read Penn’s articles in Stocks and Commodities and now Trading Markets. This is a great read and loved the bit on using momentum to spot reversals. Also good stuff on stochastics.”Hank Chinanski

“Entering trades with slow indicators and exiting with fast candle stick patterns is the theme of the book . . . a method to grab a nice piece of a move! The author has done a great job in presenting this idea.”- Kenneth C. Crandall

About the author

David Penn

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