Thursday, February 21, 2008

Soybeans: Volatility Too Low to Trade


The Bollinger Squeeze indicator, shown as red dots in the blue box in the bottom panel, has fallen too low to trade further on the 3-minute chart. I will now wait until the red dots disappear on this chart, or until I see a trade that I have missed that would have been profitable, had I taken it, on the tick chart. This will be a hint to me that sufficient volatility has returned to the market to once again make additional profitable trades. The Klinger Volume indicator (also known as Klinger+ATR) still shows selling volume, but prices have thus far remained steadfastly above the closing price for yesterday. The bulls have valiantly and successfully defended yesterday's settlement price thus far.