(From The Jacket) – In today’s markets, you won’t get very far by using outdated technical indicators and methods known to everyone. With institutions implementing innovative new tools in their trading endeavors and professionals profiting from spotting signs that an individual trader might miss, you need something to level the playing field. That’s why Kirk Northington has created “Volatility-Based Technical Analysis”.
As the President of Northington Trading, LLC, and a developer of technical analysis systems based on adaptive volatility, Northington knows how larger market-moving players create profits. Now, with this accessible guide, he bridges the gap between resource-rich institutions and individual traders by revealing how you can locate hidden mathematical structures on price charts and “trade the invisible”.
Written for those who want to adapt technical analysis to the volatility forces at work in today’s markets, this reliable resource contains all original, highly technical, mathematical-based volatility indicators, complete with MetaStock and TradeStation code; all presented without calculus. Throughout the book, you’ll not only discover how to build your own indicators and test them, but also learn how to incorporate original components into your specific trading methods.
“Volatility-Based Technical Analysis” is divided into three comprehensive parts:
- Part One outlines the many obstacles individual traders must overcome, while carefully laying out how market changes since 2000 have produced the need for volatility measurement in all aspects of technical analysis.
- Part Two explores arithmetic measurements of volatility – within exercises that create custom indicators – and delves into specific techniques for creating those indicators. It also focuses on retrofitting classic technical indicators with volatility measurement and introduces the concept of Projected Implied Volatility (PIV).
- Part Three focuses on exact trade setups – with discussions of a new technical analysis concept known as Volatility Shift and how to exploit it – and details the process of developing volatility-based technical analysis components. It also examines the importance of forecasting the broad market’s short- and intermediate-term direction.