Today we’ll look at the 4th part of my 5-lesson discussion on applying historical volatility to help you identify large moves. Over the past three days we’ve looked at using a 10/100 HV reading and a 6/100 HV reading to predict when a large move will potentially occur – as just happened over the past two days.
Another combination I look at is a 6-day HV reading versus a 25-day HV reading. This will often trigger signals when the two mentioned above do not. Ideally you’d like to see the 6-day reading to be 25% or less than the 25-day reading. This again says that a bigger move is likely near.
Tomorrow we’ll wrap us this series as we’ll look at combining multiple historical volatility signals to find the best of the best big moves each day.
New ETF Book to be Released: My new book High Probability ETF Trading will be back from the printers next week and your ordered copy will be mailed to you as soon as it reaches our fulfillment house. There are 7 quantified ETF trading strategies with some strategies testing above 90% correct since the beginning of trading for many of the popular ETFs.
If you’d like to order your copy (and download the online version today) please click here now.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.