Volatility–Based Technical Analysis + URL – Strategies for Trading the Invisible

<p>Preface xiii</p>
<p>Intended Audience xiv</p>
<p>What s Inside? xiv</p>
<p>Acknowledgments xvii</p>
<p>PART ONE Are You Prepared? 1</p>
<p>CHAPTER 1 The Challenges 3</p>
<p>The Brain Power 4</p>
<p>The Horse Power 6</p>
<p>Options and VaR Ascendancy 7</p>
<p>Rain Clouds or Urine? 10</p>
<p>News Folly 12</p>
<p>Eyes on the Goal 13</p>
<p>CHAPTER 2 The Opportunities 15</p>
<p>Choose Your Battles 16</p>
<p>Take the Offensive 17</p>
<p>Prepare and Perform 26</p>
<p>Quiet the Noise 29</p>
<p>Opportunities Outnumber Challenges 30</p>
<p>CHAPTER 3 The Foundation: Preparations for Exploring Volatility–Based Technical Analysis 31</p>
<p>The Preparations Needed 32</p>
<p>Trading the Invisible Indicators: Original Development 33</p>
<p>Tenets of Volatility–Based Technical Analysis 34</p>
<p>Component Testing 40</p>
<p>MetaSwing QuickStart 40</p>
<p>Discover by Doing 51</p>
<p>PART TWO Seeing the Invisible 53</p>
<p>CHAPTER 4 New Volatility Indicator Design 55</p>
<p>Volatility Unmasked 56</p>
<p>Standard Deviation 57</p>
<p>Example: Volatility–Based Support and Resistance 61</p>
<p>Average True Range 66</p>
<p>Molding a Volatility–Based Indicator 69</p>
<p>The Whole Picture 83</p>
<p>Building Blocks 86</p>
<p>CHAPTER 5 Integrated Volatility Indicator Design 87</p>
<p>Volatility Pointed Forward 87</p>
<p>Projected Implied Volatility 90</p>
<p>More from the Math Toolbox 101</p>
<p>Using Tools to Leverage TTI ATR Extreme 107</p>
<p>Development Efficiency 114</p>
<p>Inventing Wheels: You re Not Alone 115</p>
<p>Onward 126</p>
<p>CHAPTER 6 The Framework: A Structural Approach for Cross–Verification 127</p>
<p>Adopting a Structure 128</p>
<p>Think and See Volatility 129</p>
<p>The Framework Components 141</p>
<p>Constructing a Compound Derivative 146</p>
<p>The Framework 156</p>
<p>Going Forward 161</p>
<p>CHAPTER 7 Traditional Technical Analysis: What Works, What Doesn t, and Why 162</p>
<p>Line Studies 163</p>
<p>Chart Patterns 173</p>
<p>Oscillators 185</p>
<p>Choose the Best 198</p>
<p>PART THREE Trading the Invisible 199</p>
<p>CHAPTER 8 Bull Bear Phase Prediction: The Intermediate and Short–Term Market Swing 201</p>
<p>Why Swing with the Market? 202</p>
<p>Intermediate–Term Market Direction 204</p>
<p>Short–Term Market Swing 211</p>
<p>Seek the Advantage 223</p>
<p>CHAPTER 9 Trading the Short–Term Reversal with Volatility–Based Technical Analysis The Adeo 224</p>
<p>The Adeo Point 225</p>
<p>The Adeo Trend Rally 232</p>
<p>The Meandering Adeo 236</p>
<p>The Adeo Short 240</p>
<p>Adeo and FOREX 245</p>
<p>The Fractal Adeo 246</p>
<p>Open Your Can of Spinach 249</p>
<p>CHAPTER 10 Trading the Trend with the 1–2–3 250</p>
<p>Rectangles Everywhere 251</p>
<p>The Traditional Approach 253</p>
<p>The 1–2–3 Construct 254</p>
<p>The Daily 1–2–3 259</p>
<p>The Weekly 1–2–3 263</p>
<p>The 1–2–3: Inside and Outside 269</p>
<p>As Simple as 1–2–3 279</p>
<p>CHAPTER 11 Hidden Momentum with Adeo High Slope 280</p>
<p>We Are Experiencing Technical Difficulties; Please Stand By 281</p>
<p>Momentum Hide and Go Seek 283</p>
<p>Momentum Found 289</p>
<p>The Quick and the Broke 303</p>
<p>CHAPTER 12 Designing the Exit 305</p>
<p>The Objective: Optimize the Profit Target 306</p>
<p>Using Time Slicing to Understand Your Time Frame 310</p>
<p>Fifth–Grade Arithmetic 312</p>
<p>Exit Tactics 315</p>
<p>Achieving the Objective 331</p>
<p>CHAPTER 13 Correction and Surge: An Early Warning System 333</p>
<p>Market Breadth 334</p>
<p>The Correction Event 338</p>
<p>The Surge Event 348</p>
<p>The Best Free Advice 355</p>
<p>CHAPTER 14 Trading System Design: Detecting the Invisible 356</p>
<p>Seeing through the Fog of War 357</p>
<p>Nail It Down: Recognize the Specifics 358</p>
<p>The Importance of Believing 359</p>
<p>System Design Structure 360</p>
<p>System Design Tactics 365</p>
<p>Ask the Questions and Use the Advantages 382</p>
<p>APPENDIX A TradeStation Examples and Easy Language Code 384</p>
<p>Average True Range 384</p>
<p>The TTI ATR Extreme 386</p>
<p>The TTI Stochastic Extreme 393</p>
<p>The TTI Fabric LR 399</p>
<p>The TTI Trend Strength 403</p>
<p>The TTI RSIV 405</p>
<p>The TTI Composite 409</p>
<p>The Relative Exit 412</p>
<p>Correction and Surge 420</p>
<p>MetaSwing for TradeStation 423</p>
<p>APPENDIX B The PIV Options Advantage: Using Projected Implied Volatility to Trade the Butterfly,Condor, Strangle, and Straddle 427</p>
<p>PIV for the Butterfly and Condor 427</p>
<p>PIV for the Strangle and Straddle 436</p>
<p>PIV for Option Spreads 440</p>
<p>APPENDIX C About the Companion Web Site 441</p>
<p>Notes 443</p>
<p>About the Author 447</p>
<p>A Special Offer from MetaStock 449</p>
<p>Index 451</p>