It includes complete explanations of overbought and oversold, where momentum fits in the broader science of technical analysis, and the importance of moving average crossover. Five major momentum oscillators are explained in depth: relative strength index, MACD, rate of change, stochastics, and Bollinger Bands. Finally, the book provides trading guidance based on momentum, involving coordination of oscillators with other indicators, reversal, and continuation signals.
Momentum powerfully identifies the strength and speed of price movement. Through the use of index calculations, momentum is effective when used as a confirming indicator for other signals found in price, volume, or moving averages. Often overlooked by traders focused solely on price reversals or continuation signals, momentum provides a context to price behavior and to the price trend, and can vastly improves the timing of both entry and exit of trades.
About the author
Michael C. Thomsett is author of numerous books on the topics of technical analysis and charting. His published works include professional and trade books from Wiley, FT Press, Amacom, and Palgrave Macmillan, among others. His best-selling book Options (10th edition, De Gruyter) has sold over 300, 000 copies and has been in print since 1989. The author is a frequent speaker at investment trade shows and offers online coaching services. He considers the topic of momentum as one of the most overlooked and least understood in the science of technical analysis. His educational website is https://The Money Craft.comMore ebooks from the same author(s) / Editor
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