Volatility is Back..

Discussion in 'Trading' started by speedo, Sep 15, 2016.

  1. southall

    southall

    Depth and volatility are correlated most of the time.
    As volatility increases depth tends to go down and vice versa.
    Roughly if the ES range is average 40pts per day, i would expect approx half the depth as when the range is 20pts per day (all other things being equal).

    This is because limit orders are spread out more as prices are expected to reach wider extremes on every move that occurs.
     
    Last edited: Sep 15, 2016
    #11     Sep 15, 2016
    Apophenia likes this.
  2. wrbtrader

    wrbtrader

    Use it or lose it...it won't last long but things may last a little longer due to the pending U.S. elections.

    Also, I've traded in 1999. Like you, I do not agree that market conditions (the context) are the same for so many different reasons. We'll just need to wait and see if price reacts the same especially with the pending U.S. elections.
     
    #12     Sep 15, 2016
  3. southall

    southall

    It seems the market is going to grind higher until the next US recession or the next nasty black swan event.
    I wouldn't get my hopes up regarding sustained volatility before then but we will continue to get short term bursts of volatility every know and then which can be traded if you have good discipline.
     
    #13     Sep 15, 2016
  4. Zestilio

    Zestilio

    Looks like VIX is getting momentum. Could very well see another month and a half long volatility roller coaster.
     
    #14     Sep 16, 2016
  5. All this panic is about possible rate hike which is impossible before the election.
     
    #15     Sep 16, 2016
  6. Zestilio

    Zestilio

    Because parties wouldn't want to trigger this?
     
    #16     Sep 21, 2016
  7. Yes, as we saw it today.
     
    #17     Sep 21, 2016