The “decimalization” of financial markets, has killed market visibility and, some believe, encouraged price manipulation. The only way investors and traders can now avoid becoming victims of insiders and manipulators is to use techniques that detect their moves. In Value in Time, Pascal Willain provides breakthrough new technical analysis tools that show you how to see through market manipulations and become a better, smarter trader. This unique guide contains insights that will take your trading to the next level.
Table of Contents:
Foreword xi
Acknowledgments xiii
Introduction: Revolution Is at Your Doorstep 1
PART ONE The Set of Tools That Will Change Technical Analysis 9
CHAPTER 1 Effective Volume: An Open Window into the Market 11
Traders Get a Secret New Tool: A Brief Introduction to the Trading Mechanisms and the Market Players 14
Volume That Moves the Markets 20
Effective Volume 30
Practical Examples of Effective Volume Calculations 40
Technical Section: How to Calculate the Separation Volume 51
Improve Your Trading: Decide on the Big Picture 57
A Comparison with Traditional Tools 59
What We Learned Regarding Effective Volume 66
CHAPTER 2 Price and Value: The Active Boundaries Indicator 67
Buy Low 67
Traditional Measure of “Cheap" 69
Why Do Trends Exist? 81
Grandmothers Are Always Right! 101
For Math Lovers: How to Calculate the Active Boundaries 109
What We Learned Regarding Active Boundaries 110
CHAPTER 3 When Volume Diverges from Price 113
Effective Volume: Two Arrows from One Bow 114
Price and Effective Volume Trends 118
Price-Volume Divergence Analysis 134
Examples of Divergence Analysis 144
How to Set the Optimal Analysis Window 176
Empty Trading Minutes 181
What We Learned Regarding Divergence Analysis 183
CHAPTER 4 Supply and Demand: The Key to Trading 185
Supply/Demand Equilibrium 186
Funds’ Strategies 205
Funds and Market Manipulation 211
What We Learned Regarding the Supply Analysis 218
PART TWO Trading Strategies 219
CHAPTER 5 Performance: The Risk/Return Balance 221
The Trading Strategy 223
Optimizing Profits 226
Minimizing Risks 245
Measures of Risk-Adjusted Performance: The Sharpe and Burke Ratios 260
What We Learned in This Chapter 262
CHAPTER 6 Automated Trading Systems 265
Production of Trading Signals 268
Trading Strategies 274
What We Learned in This Chapter 317
PART THREE The Bonus Section 319
CHAPTER 7 The Market Is a Two-Way Street: Shorting Strategies 321
The Short Sale “Tick Test” Rule 321
How to Use This Book’s Tools for Short Trading 322
What We Learned in This Chapter 340
CHAPTER 8 Market and Sector Analysis 341
When Is the Market Becoming Expensive? 342
Sector Analysis 350
What We Learned in This Chapter 361
Conclusion 363
Data Providers 371
Sources 373
About the Author 375
Index 377
About the Author :
Pascal Willain is a Belgian entrepreneur with a background in mathematics and software engineering. He was a featured trader in Dr. Alexander Elder's book, Entries & Exits, also published by Wiley. You can visit the author at www.willain.com.
Pascal Willain is a Belgian entrepreneur with a background in mathematics and software engineering. He was a featured trader in Dr. Alexander Elder's book, Entries & Exits, also published by Wiley. You can visit the author at www.willain.com.
