Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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Just finished writing an article on the topic of Historically low volatility in the gold market and the interesting implications on many of the other markets as well as some of the opportunities and risks it presents with options trading.
Once the article is published, i will be happy to share but the main point I am trying to make is that markets with low volatility are MUCH different than markets with high volatility.
go ahead and open an hourly chart of the ES from this week any time and compare to an hourly chart of the same market one year ago exactly…..
Actually I decided to make it easier for you….take a look below, first chart from this week, second chart from a year ago….NOTE the volatility study value on the bottom of each chart….using a 3 day volatility as the setting.
If the image is too small…the figures on volatility study are 1373 this week, 2750 a year ago….
Bottom line is: understand the environment and volatility you are trading in and adjust trading accordingly.
PS: if you like a trial to our free trading platform with unique charting tools, click here!
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Posted in: Future Trading News