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Northington Trading
Trend Detection and Confirmation,
using Volatility-Based Support & Resistance
Northington Trading
Agenda
Page 5
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
Page 6
Northington Trading
Classic Technical Analysis
Page 7
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
Page 9
Is Not Your Grandfather’s Technical Analysis
•Adaptive
•Any Timeframe (fractal)
•Any Asset Class (robust)
•Non-Linear
•Immediate
•Predictive
•Statistically Proven
Northington Trading
VBSR
Page 10
Northington Trading
VBSR
Page 11
Northington Trading
VBSR
Page 12
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
Page 13
Northington Trading
VBSR
Page 14
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
Page 18
Northington Trading
Bullish Trend Pause
Page 19
Northington Trading
Trend Contination
Page 20
Northington Trading
Bearish Trend
Page 21
Northington Trading
Messy Trend - aka: real world normal
Page 22
Northington Trading
Trend Wave
Page 23
Northington Trading
Trend Confirmation
Page 24
Northington Trading
Trend Confirmation – Higer Time Frame
Page 25
Northington Trading
Multi Timeframe
Page 26
Northington Trading
Trend Confirmation – Breaking Resistance
Page 27
Northington Trading
Trend Discussion
Page 28
Northington Trading
MetaSwing Full Suite
Page 29
APPS CS:MS<GO>
Northington Trading
More About MetaSwing
Page 30
Northington Trading
More About MetaSwing
Page 31
Northington Trading
Q&A
Page 32
Questions ?
Northington Trading
Thank You for Attending
Kirk Northington, CMT Partner and Chief Technical Analyst [email protected] Twitter: @kirknorthington Carson Dahlberg, CMT Partner and Chief Technical Strategist [email protected] 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