Background
Martin Pring is one of the most respected technical analysis educators, having written over 15 books including 'Technical Analysis Explained' — widely considered the definitive textbook on the subject. He's also known for his work on the 'Know Sure Thing' (KST) indicator and his intermarket business cycle model.
Core Methodology
Pring's approach integrates technical analysis with the business cycle. His 6-stage business cycle model shows which asset classes (bonds, stocks, commodities) lead and lag at each stage. This provides a macro overlay for technical trading decisions. His KST indicator smooths multiple rate-of-change calculations to identify major trend reversals.
Key Trading Rules
- Use the business cycle model: bonds turn first, then stocks, then commodities — each leads the next
- Stage 1 (early recovery): buy bonds. Stage 2: buy stocks. Stage 3: buy commodities. Stage 4-6: reverse.
- KST indicator: smoothed composite momentum — when it crosses above zero, momentum is turning positive
- Multiple timeframes: confirm the trend on the monthly/weekly before acting on the daily
- Trendline analysis: the most underrated and most reliable technical tool
- Volume precedes price: rising volume on advances and declining volume on pullbacks confirms the trend
Key Concepts
Books & Resources
Technical Analysis Explained by Martin Pring (the textbook). Martin Pring on Market Momentum. The Complete Guide to Technical Analysis. Pring.com.