With every potential trade, we need to look at the current volatility. What many traders don’t stop to think about is that all volatility is not equal.
Check out today’s conversation, where I walk you through what we know is working in today’s market.
We can break volatility down by each day of the week. Why would we want to do that? Because each day of the week has different volatility. Monday doesn’t work like Friday, Tuesdays can look very different than Wednesdays, and Thursdays can have their own volatility. Many traders will average every day of the week together. There are better ways to measure what the markets do on a given day.
This is the beginning of why so many traders are frustrated with the markets. They are not seeing the follow-through they need for successful swing trades. There is a fix.
Here are some cliff notes from the video above. Use a one-hour or daily timeframe. Have a way to measure historical volatility. We want to know what has happened on a Monday, Tuesday, or any day of the week in the last six months. This combination is how you’ll begin to see what you wouldn’t normally see.