[Keep an eye on volatility to manage your trades better]
Here’s the thing:
The market moves in volatility cycles—from a low period of volatility to high volatility, and vice versa.
This means if the market is in a low volatility environment, it’s a sign the market is about to make a big move (and you want to be prepared for it).
Here’s an example…
Let’s say you went long on the 4-hour timeframe and the market quickly moves in your favour.
Also, you noticed the daily timeframe has formed a buildup, a low volatility price pattern which looks like a “squeeze”.
So, what do you do?
• Hold your trade with the hopes that if volatility expands, it does so in your favour
• Exit your trade at the nearest swing high as the market might reverse against you
• I don’t know
For me, I’d hold my trade because there’s a huge profit potential if volatility expands in my favour.
Am in the Joubert to chase povery right.
Namata Rashidah
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