Watch For Volatility Changes


If a given market suddenly trades far in excess of its recent volatility in
a direction opposite to the position held, liquidate your position
immediately. For example, if a market that has been trading in approximately
50-point daily ranges opens 100-150 points higher, cover immediately if you
are short.

Jack
Schwager, from

Schwager on Futures: Technical Analysis
(1996, John
Wiley & Sons, New York).