I have read both of Elder’s books and found them full of common sense and without the sensationalist hype you often find. He also carefully explains the fundamentals behind every indicator he introduces. Many authors leave readers simply remembering an acronym and how it should be used.
Anyway - he is a great fan of divergences in general and MACD/RSI divergences in particular. I initially dismissed these as fussy over complications of perfectly good indicators until I realised that neither MACD nor RSI were particularly good on their own and that by looking at price divergences many false signals were removed.
Do you use divergences with your own trading? I am interested in the effectiveness in different time frames. Elder believes these signals should be very powerful in any time frame. However full, class A, divergences occur very rarely on daily charts so I was wondering about there use intra-day? Quick back-test by eye shows that they might lose something in such a short time frame – have you looked further into this at all? Surely the theory behind this set up should be the same in any time frame.
I’d be interested to hear your comments and opinion on this and any other of the techniques described in either book.
I don’t know why Elder’s books aren’t more popular in the UK – maybe his patient ‘’sit, watch and wait’ approach doesn’t appeal to many.
I too am an Elder fan and am presently on my third reading of Trading for a Living and still learning from it!
It can be hard going in parts and is not particularly good night time reading after a hard day in the office.
If you trade it is important to understand the fundamentals of all the technical analytical tools whether you choose to adopt them or not. For me this is where the book really scores and perhaps goes a long way to explain why Elder has not enjoyed wide acclaim. Someone like Lynch is more widely known and a lot easier to read but frankly his writings are not in the same league (hence also the price differential).
I have seen but not bought the accompanying study guide to Trading for a Living. My advice would be to save your money and keep reading the main text until you understand it fully.
To date I have not returned to Amazon.co.uk to get Come into my Trading Room. I know there is about a ten year gap between the two publications and ECN`s have come a long way in that time but I suspect the new book largely replicates the old but in perhaps more fashionable prose. This at least is the impression I gain from the chapter headings. If I am wrong about this perhaps some kind soul will point me in the right direction.
I am currently reading Trading for a Living - and very much enjoying the psychological insights. Would anybody recommend the accopanying workbook as a good way to focus on the text and actively imbibe it?!
I found the tutorial CD on Prings Introduction to TA an excellent beginning to my trading education when I first entered this fascinating world.
I think it has a lot of good stuff in there but I must amit you have to stick with it.
Elder is an easier read, I have learned a lot from both of them
One other point, I have been more into candlesticks of late after reading nisons books, I have found that the additional support and resistance points identified by them to be useful in making trading decisions when trading from the right hand edge as Elder likes to put it
I think you have to use the tools that suite you best and approach your trading with discipline, both these books help to re-enforce that