Let’s take another look at cornerstone chipmaker AMD as shares surged at the start of the week.
AMD continues to hold strong despite unfriendly market conditions. The company found solid momentum with the closing of its acquisition of programmable chip developers Xilinx Inc.
Shares of AMD popped as high as 4.5% over Friday’s closing price, and bullish options traders were out early looking for more upside!
A lot of people want to know how to trade stock market volatility, and for good reason…
That’s because volatility is the tail that wags the dog on Wall Street. It’s also a hot topic right now as the beginning of 2022 has been extremely volatile. And you don’t have to trade volatility in stocks or an index to turn a tidy profit…
You can trade it straight up via funds and notes that track the Chicago Board Options Exchange Volatility Index, or VIX, also known as the “fear gauge.” My favorite way to do that is through an ETN with the ticker VXX...
But before we get into how to trade stock market volatility, first we need to understand exactly what it is and how it’s measured.
Then we’ll dive into what I love most about this profitable trading strategy…
“My first bi weekly selection total is far over 30%. Great start Roger!”
Christian W.
The Stochastic Indicator, like the RSI, is a range-bound oscillator. However, where the RSI is calculated based on average gains and losses, stochastics compare the current price level to its range over a given period of time. Stocks tend to close near their highs in an uptrend and near lows in a downtrend. Therefore, price action that moves further from these extremes toward the middle of the range is interpreted as an exhaustion of trend momentum.
A stochastics value of 100 means that the current session closed at the highest price within the established time frame. A stochastic value of 80 or above is considered an indication of an overbought status, with values of 20 or lower indicating an oversold status.ze the past and predict future price trends and patterns. Technical traders rely on indicators to help interpret the market. The goal in using indicators is to identify trading opportunities. For example, a moving average crossover often predicts a trend change. In this instance, applying the moving average indicator to a price chart allows traders to identify areas where the trend may change.
Give us a follow and join the conversation on our official social media channels! Just this week, Jeff Z discussed whether or not inflation is going away anytime soon.
ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. WealthPress provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day.
DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpress LLC are for your informational purposes only. Neither Wealthpress nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpress is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit wealthpress.com/terms for our full Terms and Conditions.
0 Response to "Trading Volatility in ANY Market Condition"
Post a Comment