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How to Choose the Best Volatility Trading Strategy for ETFs and Stocks

By Larry Connors | TradingMarkets.com
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Thank you to everyone for the many e-mails on the historical volatility lessons. It’s very nice to see so many people taking to this research.

Today we’ll wrap up with Part 5 of the series and answer the question that many of you asked me: "What volatility combination do I like best?"

The answer is if I had to pick one, it would be the 10/100 reading. It was the first reading I published in 1995 and I feel it remains the purest. But, if given the chance (and we do have this chance), combining the combinations is best. This means looking for ETFs and stocks that have 10/1000 readings and a second or third reading (meaning a 6/100 and/or a 6/25 reading) at the same time.

When multiple time frames are signaling that short term volatility is low compared to longer term volatility, it gives you greater confirmation that a large move is near as we saw earlier this week in the stock market.

I hope you enjoyed this series on historical volatility and can profit from this knowledge in the future.

New ETF Book to be Released: My new book High Probability ETF Trading will be back from the printers early next week and your ordered copy will be mailed to you then. There are 7 quantified ETF trading strategies in the book with some strategies testing above 90% correct since the beginning of trading for many of the most popular ETFs.

If you’d like to order your copy (and also be able to download the online version today) please click here.

This is from Larry Connors Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.

Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.


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