Tuesday 24 May 2011

In Search of Volatile Markets

While the ES is the ultimate in liquidity, it is also the ultimate in competition. With a very large tick size and lower volatility, I think there are easier places to make money. However, having said that, increased volatility looks "scarier" to trade. But all in all, trading the Euro, Crude and the DAX can give a more consistent and larger pay day than other markets, if (I should really write IF because it's a "big if") a trader has the patience and skills to take the right trades.


As I have said many times, not all trades are created equal. It's the context that counts, but putting a trade on in a more volatile market that fits the context can provide more profit for fewer hours in front of the screen.

Today's chart is a range bar close only chart - same range bar but just showing the close. I suggested to one of my students today that he look at this type of chart and see if it gives him anything. Sometimes less is more.


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