Volatility-Based Technical Analysis: Strategies for Trading the Invisible: 396 (Wiley Trading) - Hardcover

Northington, Kirk

Hardcover

ISBN 10: 0470387548 ISBN 13: 9780470387542

Publisher: Wiley, 2009

Synopsis

A framework for creating volatility-based technical analysis and trading it for profit

Volatility-Based Technical Analysis bridges the advantage gap between resource rich institutions and individual traders. It is a no-calculus, plain-English text that reveals original, highly technical, mathematical-based volatility indicators, complete with MetaStock® and TradeStation® code. With this in hand, any trader can "trade the invisible" by seeing a hidden mathematical structure on the price chart. Author Kirk Northington reveals his proprietary volatility indicators that serve as a market early warning system. Northington extensively teaches you how to build your own indicators, test them, and incorporate your original components into your specific trading methods.

• Walks traders through the mathematical techniques needed to create indicators that fit their own style
• Illustrates volatility-based entries and exits with over 170 descriptive chart examples
• Introduces two new concepts in technical analysis: Volatility Shift and PIV

Written with the serious trader in mind, Volatility-Based Technical Analysis has what you need to successfully trade today's institutionally dominated markets.

About this title

About the Author

KIRK NORTHINGTON is the President of Northington Trading, LLC, a developer of technical analysis systems based on adaptive volatility for swing trading. The company's flagship software product, MetaSwing, is an add-on toolkit for users of MetaStock technical analysis software. In addition to system design, Northington Trading trades stocks on the NYSE and NASDAQ exchanges. Kirk has previously held positions in several Fortune 500 companies, with experience in engineering, digital control system design, and project management.

From the Back Cover

In today's markets, you won't get very far by using outdated technical indicators and methods known to everyone.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.

Along with the practical insights found throughout these pages, you'll also be able to build your knowledge base with information found on this book's companion Web site (www.tradingtheinvisible.com). This site contains free trial versions of programmable technical analysis software as well as more examples and exercises that tie into the text.

Designed with the serious trader in mind, Volatility-Based Technical Analysis skillfully highlights how to use unique volatility-based tools to successfully trade today's institutionally dominated markets.

From the Inside Flap

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.

Along with the practical insights found throughout these pages, you'll also be able to build your knowledge base with information found on this book's companion Web site (www.tradingtheinvisible.com). This site contains free trial versions of programmable technical analysis software as well as more examples and exercises that tie into the text.

Designed with the serious trader in mind, Volatility-Based Technical Analysis skillfully highlights how to use unique volatility-based tools to successfully trade today's institutionally dominated markets.

Edition details

• Publisher: Wiley
• Publication date: 2009
• Language: English
• ISBN 10: 0470387548
• ISBN 13: 9780470387542
• Binding: Hardcover
• Edition number: 1
• Number of pages: 480