Technical Analysis: Professional
Level 3 of the technical analysis course. Foundations taught the pieces and Intermediate put them into a setup with a record. This level goes underneath and beyond: how a price is actually made and what execution costs, where liquidity rests and how it moves price, how volatility changes and how to size for it, what a record can prove and what it cannot, and how a discretionary process becomes a system that can be run — and stopped — by rule. Assumes both earlier levels.
Professional 16 of 16 parts
Level 3 of 3. Assumes Foundations and Intermediate — a written setup and a record. This level is about the machinery under the price, the statistics that judge the record, and turning a process into a system.
Market microstructure
- How a price is made: the bid, the ask and the book behind the quote
- Market, limit and stop orders: which queue you join, and what it costs
- Spread, depth and slippage: what execution actually costs
- How a CFD price is formed: liquidity providers, aggregation and last look
Liquidity and order flow
- Where liquidity rests: stops, limits and the levels that attract price
- Liquidity sweeps and stop runs: reading a level from the orders behind it
- Order flow without an exchange: what a CFD trader can and cannot see
Volatility regimes
- Measuring volatility: true range, ATR and realised volatility
- Volatility regimes: why quiet follows quiet and storms come in clusters
- Sizing and stops by volatility: keeping risk constant when the range changes
Validating an edge
- Expectancy with error bars: how sure the record lets you be
- Monte Carlo and drawdown: what the record's order hides
- Overfitting and out-of-sample: why the best backtest is the one to distrust
Systematising the process