Decoding Price Movements and Rhythm
Today we will dive into the power that volatility and time have when you’re day trading. Time and volatility have both been notoriously tricky to understand. We know there’s volatility on the open to about 10 o’clock Eastern. We know by lunchtime, we could see a drop in volatility. And lastly, we know the last hour of the day has a potential for increased volatility.
What if we knew how many points a symbol has historically moved? What if we knew the rhythm of the trading day? Those are the types of questions my hourly price movement ranges tell us.
HPMRs essentially decoded these questions. In fact, I’ve been using them in some form or fashion for about ten years.
Let me show you what I mean…
In today’s video, I will show you how this works. In this example, we used HPMRs on the five-minute timeframe for NASDAQ. This is an intro day trading tool that you can use on timeframes up to 60 minutes.
