As with any technical stock trading book, there will be information that you can glean from it. There will also be ways in which the book does not live up to your expectations. This book had both for me.
Mark Larson covers a number of stock indicators: moving averages, balance of power (institutional buying or selling), MACD, price rate of change, time-segmented volume, relative strength index, inertia (momentum based on volatility), average true range, and stock scans. Many of these indicators I already use. A couple I felt new encouragement to use.
Mark Larson reminded me that a convergence of the 20, 50, 200 day moving averages at nearly the same point is a powerful sign either to the upside or the downside.
He reminded me that paying attention to institutional buying and selling is an important indicator. He suggested using a chart of it to follow your stocks. However, he neglected to say exactly where such a service was easily available. I know Reuter’s tracks this for you (with no graphing capability that I know of).
He touted the time-segmented volume as a leading indicator, which is a proprietary indicator to the Worden Brothers TC 2000 program. It is an indicator based on both the stock’s price and its volume. This actually makes terrific sense to me. However, since I don’t own the Worden Brothers TC 2000 program, it has little applicable value other than to remind me to pay attention to the volume as the price changes.
The MACD, price rate of change, the inertia (momentum), the ATR, and stock scans were all things most traders are familiar with. This was fairly standard pabulum.
In sum I found this book a short, enjoyable read. It reminded me of several points I should think of. It introduced a new point or two. However, it was shamefully lacking in detail. It touted the use of specific parameters, but it would often steer clear of giving out the author’s exact recipe. It seemed an advertisement for the Worden Brothers TC 2000 more than a serious attempt to educate the investor. On top of that the CD that came with my book was unreadable. As a serious educational treatise on stock trading, it is disappointing. If you are thinking of buying the Worden Brothers TC 2000, it is likely worth a read.
This book is from Market Place Books.