Monday, November 20, 2006

Good article on Volatility

Talks about measurement and implications of volatility when trading. I'll be looking more into the mathematics of implied volatility. I've been dabbling with volatility breakouts using standard deviations and ATRs so I found this information interesting along with another article on Michael Covel's site.

More and more I've been looking for beginnings of trend changes rather than continuations. It's become very rare that I buy a cup w/ handle breakout. It's hard to explain, but it seems like there is better opportunity finding stocks that are exhibiting patterns of a long term change in direction rather than a pause in an uptrend, although, I'm not going to lie, uptrending stocks are very much still my friend. I just think it will be a useful endeavor finding bottoms and riding longer trends.

1 comment:

Michael said...

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