Friday is usually my least favorite day to take on new setups, for obvious reasons, but beggars can’t be choosers and I’m glad that things are finally starting to come into sync across the board. Plenty of juicy setups today and I’m confident even Hoss won’t go hungry tonight!
It’s crickets on the setup front, nothing salient on my momo charts either. Which means it’s time to relax, take a step back, and review the big picture across the board. Although point & figure charts seem a bit antiquated in this day and age I have never understood the negative opinion some traders hold against them. After all PnFs simply give us an opportunity to cancel out an inherent but sometimes deceptive aspect of your vanilla candle or line charts. And that is TIME.
Earlier today I decided to exit a long campaign on gold which I only had initiated late last week, and which on the surface looked like a perfectly good reversal candidate. As you know I rarely interfere with open campaigns and I’d like to share my reasons.Technically speaking we are sitting on prospective long term support levels, so what gives?
If you have been visiting regularly then you probably recall some of my earlier posts on realized volatility . For the rest of you here’s a quick recap as it’s important to understand what realized volatility (RV) is and how it compares to implied volatility (IV). Simply RV measures the amount and amplitude of price change observed in a financial instrument over time. Big moves to the up side and down side will both produce spikes in RV. As such the volatility we measure or predict always produces an unsigned return – it does not care whether the market goes up or down.