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Northington Trading
Trend Detection and Confirmation,
using Volatility-Based Support & Resistance
Northington Trading Page 2
Carson Dahlberg, CMT
carson@metaswing.com (704) 542-0156
Northington Trading Page 3
Kirk Northington, CMT
kirk@metaswing.com (704) 542-0156
Northington Trading
Agenda
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1. Review of Volatility-Based Support and Resistance (VBSR)
2. Trend Beginning and Ending with VBSR
3. VBSR Compression and Trend
4. Trend Confirmation with Trend Wave
Northington Trading
Money is made at the Extremes
MetaSwing Philosophy
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Northington Trading
Classic Technical Analysis
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Source: investopedia.com
Support: price level at which buyers become as powerful or aggressive as sellers and stop a price decline
Resistance: price level at which sellers become as powerful or aggressive as buyers and stop a price advance
Source: Technical Analysis: The Complete Resource for Financial Market Technicians, Kirkpatrick & Dahlquist, ©2007 Pearson Education
Source: investopedia.com
Source: investopedia.com Source: investopedia.com
Northington Trading
Classic Technical Analysis
Page 8
Source: investopedia.com
Support: price level at which buyers become as powerful or aggressive as sellers and stop a price decline
Resistance: price level at which sellers become as powerful or aggressive as buyers and stop a price advance
Source: investopedia.com
Source: investopedia.com Source: investopedia.com
Northington Trading
Volatility-Based Support & Resistance
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Is Not Your Grandfather’s Technical Analysis
•Adaptive
•Any Timeframe (fractal)
•Any Asset Class (robust)
•Non-Linear
•Immediate
•Predictive
•Statistically Proven
Northington Trading
VBSR
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Northington Trading
VBSR
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Northington Trading
VBSR
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N band - design purpose: Historical volatility price point that price will not cross. If price crosses it a short term reversal should occur.
Northington Trading
VBSR
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Northington Trading
VBSR
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Performance Characteristics : when price comes to within 1 ATR of the N band, directional change occurs With Trend: 5 - 8 periods Counter Trend: 2 – 4 periods
Northington Trading
VBSR
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Northington Trading
VBSR
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Four pairs of lines: 1-2 3-4 5-6 7-8 Each pair is 1 ATR(40) distance apart
Northington Trading
VBSR
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With Trend: 5 - 8 periods Counter Trend: 2 – 4 periods
Northington Trading
Bullish Trend Begin
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Northington Trading
Bullish Trend Pause
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Northington Trading
Trend Contination
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Northington Trading
Bearish Trend
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Northington Trading
Messy Trend - aka: real world normal
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Northington Trading
Trend Wave
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Northington Trading
Trend Confirmation
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Northington Trading
Trend Confirmation – Higer Time Frame
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Northington Trading
Multi Timeframe
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Northington Trading
Trend Confirmation – Breaking Resistance
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Northington Trading
Trend Discussion
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Northington Trading
MetaSwing Full Suite
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APPS CS:MS<GO>
Northington Trading
More About MetaSwing
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Northington Trading
More About MetaSwing
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Northington Trading
Q&A
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Questions ?
Northington Trading
Thank You for Attending
Kirk Northington, CMT Partner and Chief Technical Analyst kirk@metaswing.com Twitter: @kirknorthington Carson Dahlberg, CMT Partner and Chief Technical Strategist carson@metaswing.com Twitter: @carsondahlberg MetaSwing: APPS CS:MS<GO> Phone: (704) 542-0156 www.metaswing.com
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Northington Trading
Trend Detection and Confirmation,
using Volatility-Based Support & Resistance
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