Tracking and Trading Volatility Cycles
This column was originally published on RealMoney on Dec. 14 at 12 p.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
Traders and investors make more money in volatile markets than in quiet ones. But few of us really understand the underlying cycles that generate lively and dead price action. It's worth our time to understand the difference between these two states of market activity, because long-term profitability depends on it.
All stocks and indices cycle between bursts of intense movement and periods of relative calm. This unfolds in all time frames, regardless of liquidity or fundamentals.
The sum total of this activity shows up on charts as trends or trading ranges. It also characterizes the testing process when advancing or falling price establishes new boundaries. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
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DOWN
154.48
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19.14
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37.61
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0.48
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10 Yr
3.23%
SPDR Gold
115.06
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-1.48%
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-1.72%
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-1.73%
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-1.46%
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