Market Volatility
Traders suffer from unexpected moves in the market. It is mostly caused by news announcements, or geopolitical events, or sometimes also natural disasters like epidemics as we had with Covid. Nobody can really predict when these will happen. Sometimes with news markets run up, sometimes down and sometimes up and immediately down and the opposite too.
So how can we be safe from volatility
However, volatility for a time price trader is a good thing. We are looking for time and price correlation where the market will move or turn or break out and knowing the hours and the prices is the best way to be safe against volatility.
Also knowing how to time the markets gives us the ability to know when the market will be volatile and this is why you sometimes get comments on trading hours like the one below:
THURSDAY: 01:00 & 02:00-03:05 & 04:35 & 13:55 & 17:40 CAREFUL UNTIL 18:40 CAN BE SUDDEN/DISRUPTIVE THEN 19:25-20:20 TARGETING 22:50
Preparation is everything and the winners of wars are often the better prepared. It is the same mentality for us. Understanding what causes volatility and at what time they are going to happen allows us to be prepared. Accordingly, we can manage the trade better; take profit and exit, move stops or take partial profit.
Knowing the swing days and hours in advance also allows us to get into the trade at the right day, right price at the right time. So it works in our favor in any case.
Formula is easy; swing day, swing hour at the right price. Use this knowledge to minimize risk and maximize profits.
YouTube video for the blog post: https://www.youtube.com/watch?v=drt2nhGT4Zg
