how to day trade markets with low volatility

Discussion in 'Technical Analysis' started by robinxing, Oct 9, 2007.

  1. any technical article talking about this

    thank you for your help
  2. good question :confused:
  3. Reduce chart size and trade with the trend on retracements.

  4. joesan


    diversify the markets
  5. fine

    it is no use wasting time on the choppiness market
  6. Just don't make the classical mistake of leaving your computer (stop monitoring) the market when you see low volatility trading conditions.

    Most traders forget or don't know that low volatility markets are precursors to most strong directional price movements and trends.

    Simply, if you aren't talking about hindisght analysis and can recognize low volatility markets as it is occurring in realtime...

    Be prepare to trade because good price movement usually is around the corner.

  7. Is this month considered "low volatility"? I'm assuming you mean equities.
  8. This is the only type of market that Atticus (formerly RiskArb trades). He has said that he stopped trading directionally a long time ago, (probably when he broke his first million, LOL) - not that I know anything about his financials, mind you.

    You would need to study different types of hedging strategies, as well as being able to determine when the state that you are calling choppiness is because of:

    a) traders preparing for accumulation; or
    b) traders perparing for distribution.

    If you google words like hedging, low volatility, straddles, etc. you can find information on the subject.

    Much more sophisticated and requiring a larger knowledge base than pure directional trading.

    Good trading,