Friday, January 18, 2008

And still another long!


I keep taking these trades as long as the slope of the movements and the volatility remains high enough to continue. How do I know when volatility is insufficient? In addition to the Bollinger Squeeze indicator, I watch for the slope of the previous movements to slacken. If, following a long trade, I take a short trade that doesn't make money, I assume that volatility has fallen to a level that is too little to make money, either long or short. I then await the next break-out.