Volatility is a market measure that describes price movement as the auction moves in a direction. The greater the volatility, the more price will fluctuate on its way to its destination. The more fluctuation, the greater the opportunity. We’ve been in a period of extended low volatility. In fact, these are historic lows.
It’s been very difficult to buy and yet the market has always been going up.
At the same time, the typical patterns we look for on the short side have not been present, so it’s been difficult on the short side as well.
This is a cycle and cycles change.
Are you prepared for volatilty that is more normalized?
When presented with changes in volatility the successful trader adapts to the environment. What works in one environment will not work in another.
You need to know where you are in the market.
Market profile helps you interpret market behavior to discern how you should behave as a trader.
One thing we know. The more things stay the same, the more they change.
We may be in a process of changing to more normalized volatility now as we end the summer and lead into the fall.
Are you prepared for the upcoming normalized volatilty? Do you have a gameplan for “uber” volatility?
If you don’t, we should talk.