Good morning and happy Friday, traders! Volatility has returned after the holidays, but in a muted, non-directional context. This is a little unusual as the market often would have made a strong trend move (over the course of several days) by this point after the holiday. This week, we have had a series of economic numbers that could potentially have … Read More
Morning Thoughts 1/5
Good morning traders, Pretty much across the board, from domestic to international stocks, currencies, commodities and financial futures, we are seeing volatility return to the markets. Also, as we look at world markets, (and this is a gross generalization) most of the moves that have emerged over the 2 and a half trading days have been against the trends that … Read More
Morning thoughts 1/4
Good morning traders, A few important things happening this morning: Europe is strong at +1.3% (2 standard devs). UK is much stronger and is up 3.2% (4.5 standard devs) on followthrough from very hot manufacturing data. We are also seeing corresponding moves in Cable and Euro compared to Pacific currencies (GBPAUD +2%, etc). Chile is intervening with a 12B FX … Read More
Traders Ask: How Do You Prepare for the Trading Day?
A video blog that shows some ideas for ways to review important setups for the next trading day.
Morning Thoughts 1/3
Good Morning Traders, And Happy New Year! Some interesting things happening this morning: First of all, realize that volatility cratered in the last weeks of 2010, but this is nothing out of the ordinary. The circled area above shows our indicator that looks at each day’s price change as a standard deviation of the last 20 days. As you can … Read More
My List: Some Ideas for Finding Tradable Edges
A wrap up to the series on randomness in markets, with some practical trading advice.
Randomness revisited: random levels?
Another look at randomness in markets… this time looking at random S/R levels drawn on real price charts.
Traders ask: VWAP?
A brief look at VWAP: what it is, how to calculate it, and some ideas for how you might use it in your trading.