Intra Day Volatility Equals opportunity

Intra-day volatility in the stock indices is very high. Lots of action. Although increased volatility can be more difficult, what I do is to focus on outside in trades - fade the fast moves. This gives lots of trades every session.

The downside of this approach is that when the market goes into trend day mode - and it can switch part way during a session - I need to only fade the moves opposite to the trend, trading only those that pullback enough. Trading shallow pullbacks means it takes longer to discover I am wrong - bigger risk and the balance between risk and reward may not meet my standards.

Summertime

Gershwin's "Summertime" is a great song. This recording by Billie Holiday is a wonderful example.

Summertime is well and truly here but it brings lots of opportunities. One thing that happens when the markets gets quieter is that I may have to reduce the size of the bars I trade and make my entries more aggressive. I just get the trade on ad then decide whether I want to keep it or not. Trade location is even more important than usual when its quieter. Having a good trade location means that I can usually scratch a trade if I think I'm wrong.

My eBook is Here!

Today I posted my eBook: Trading Order Flow in a Market Profile Context. You can start reading the eBook by clicking the tab: The eBook at the top of this page.

I will also be posting recorded live trades using my methodology and charts starting soon. I'll Tweet when these are posted to the ElectronicLocal YouTube channel.