Volatility-Based Technical Analysis, Companion Web site: Strategies for Trading the Invisible

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Review "While the book is written in an easy to understand style, Northington realizes that not every trader is a programmer. For that reason, he includes the MetaStock® and TradeStation® code for the original, volatility-based indicators that he presents in the book. With these examples in hand, any trader can apply the concepts which are explained in rich detail. Northington’s goal seems to be to teach the reader how to build indicators based upon unique market insights; test the indicators on a stand-alone basis; and incorporate meaningful indicators into trading methods that suit a trader’s personality. In doing so, he also provides a ready-to-go trading system that can be applied with days of beginning the book." (Market Technicians Association Technically Speaking, September 2009) "Northington presents a credible framework for trading volatile markets. His creativity and advocacy merit attention. New and advanced traders alike will benefit from grasping these concepts." —SFO Magazine Read more From the Inside Flap In today's markets, you won't get very far by using outdated technical indicators and methods known to everyone.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. Read more See all Editorial Reviews