Momentum, Direction, and Divergence

Momentum, Direction, and Divergence The Wiley Trader’s Advantage is a series of concise, highly focused books designed to keep savvy traders in tune with the latest successful strategies and techniques used by the keenest minds in the business. In this latest volume, technical expert Bill Blau shows you how momentum, direction, and divergence form the basis of most technical indicators and how they can work for you to provide a considerable competitive advantage. Clearly, concisely, and with a minimum of complex mathematics, Blau shows you how to understand and apply them. Integrating the latest financial insights with more than 75 easy-to-follow graphics, Blau describes the uses and limitations of many of today’s most notable technical indicators. He then demonstrates a variety of ways in which the principles of momentum, direction, and divergence can be used to create a versatile new set of technical indicators or to improve the effectiveness of the most widely used traditional indicators. Focusing on the groundbreaking double smoothing concept, which he introduces for the first time in this book, William Blau: Develops reliable new momentum indicators based on double smoothing techniques Shows how these indicators improve the effectiveness of most popular oscillators, including the RSI, MACD, and stochastic indicators, by solving a host of timing problems Combines the standard Welles Wilder techniques with his original True Strength Index to improve the effectiveness of most directional movement indicators Introduces new ways of identifying divergence that make implementation simpler than ever And much more A complete guide to the most potent new indicators and their applications, Momentum, Direction, and Divergence is an indispensable resource for traders, portfolio managers, and all financial professionals.