Introduction to Technical Analysis
By Martin Pring
UK-born Martin Pring offers readers something to get stuck into straight away with a workbook and CD-rom element to his Introduction to Technical Analysis. With practical experience and ‘trial and error’ remaining such a crucial part of learning new techniques, we thought this was a great bonus. The package includes tests at the end of each section as well as documentary-style and graphical examples.
A respected voice in the field, Pring opens up the sometimes mystifying world of playing the markets to those who have had no prior experience by catering to a range of learning styles (reading, watching, doing) and using clear and concise language.
The key skill that Pring wants to impart here is that of speed and first-mover advantage. Introduction to Technical Analysis focuses largely on teaching users how to determine the movements and behaviour of the market before anyone else does. Considering how many traders operate at one time, being able to get in on a decision before most others is a tall order, however Pring shows that it is possible if one adopts the right formula. With the application of ‘common sense’ it is clear that at least a few hundred thousand people around the world are able to find success with first-mover advantage most mornings, or there would be no inspiring reports of career traders and many floors would lie empty.
Pring’s foundational principles are what really govern this book. Chapters include;
- Chapter 1: Basic Principles
- Chapter 2: The Market Cycle Model and Basic Trend Identification
- Chapter 3: Support and Resistance
- Chapter 4: Price Patterns
- Chapter 5: The Ups and Downs of Trend Lines
- Chapter 6: Price Patterns for Traders
- Chapter 7: Moving Averages
- Chapter 8: Principles of Momentum
- Chapter 9: Key Momentum Indicators
- Chapter 10: How to Make Volume Work for You
- Chapter 11: Introduction to Candlestick Charting
- Chapter 12: Some Quick Tips on Practical Trading Tactics.
Although at a cursory glance Pring is speaking just to beginners here, it is important to note the significance of simple yet effective formulas. Trading shouldn’t be unnecessarily complicated or pose delays to the day-to-day running of an experienced worker’s desk. Pring promotes the idea of finding something that works and exploiting that system to its fullest potential rather than confuse one’s self with reading endless books and commentaries on the ‘right’ way to do things. In 1997 Pring was inducted into the Traders’ Library Hall of Fame and attributes his accolades to the use of a pared-down infrastructure. His 26 years as president of the Pring Turner Capital Group and member of various respected bodies elevate his take on things to expert-level advice and includes practices that he still employs today. The only official Dow Jones delivery partner for a joint venture business index, Pring is still very-much a heavyweight in a sea of alternative methods and frameworks.
Overall, this multi-platform guide gets our approval for its combination of accessibility and fundamental principles.
Review by Andrea Photiou