In older books about the stock market, there’s a pattern called a “coil.” Precise definitions differ, but the general idea is that the price action is acting like a spring being compressed. Eventually, the spring is released, and it makes a rapid move as it reverts to its full size. In the market, the coil is a setup for a sharp price move. The chart below shows the recent price action with a volatility indicator at the bottom of the chart. The indicator is the Income Trader Volatility (ITV) indicator I developed to help me identify the best times to… Read More
In older books about the stock market, there’s a pattern called a “coil.” Precise definitions differ, but the general idea is that the price action is acting like a spring being compressed. Eventually, the spring is released, and it makes a rapid move as it reverts to its full size. In the market, the coil is a setup for a sharp price move. The chart below shows the recent price action with a volatility indicator at the bottom of the chart. The indicator is the Income Trader Volatility (ITV) indicator I developed to help me identify the best times to trade options. It’s a pure measure of volatility that responds relatively quickly to the market action. Best of all, it solves the problem of the lag that is found in many popular volatility indicators. —Recommended Link— 9 Game Changing Predictions for 2019 Want to know where the money will be in 2019? Discover over a dozen potentially life-changing recommendations inside our special new report, 9 Game-Changing Investment Predictions for 2019. Click here for the full details now. Currently, volatility is low, as it was in September. ITV tends to move from low to high values. Current readings are… Read More