WARNING: Extreme Volatility Ahead!

[fxscalper90]

Hey guys,

Is it my imagination or are we getting ready for extreme volatility?

Check this out: Basically, top energy derivatives trader Goldman Sachs issued an alert calling for "a super-spike period that could eventually drive oil prices toward $105."

If it is so, or the market begins coming onto it rapidly, forex is bound to encounter extreme volatilty ahead.

I think I've already been seeing signs of Euro/dollar encountering unusual activity pushing indicators off the charts. Not saying record volume or anything, just... unusual trading patterns.

Kind of like what a seismologist might pick up right before a massive earthquake hits.

Add to that massive oil swings and the market's going to rock (read violent 5 to 7 cent swings).

Thoughts?

sKaLpZ
(chart = oil)

[fxscalper90]

Post by garyh:

fxscalper,

I don't see any problem with volatility increasing (unless the 5-7 cent swings are on the minute bar). Volatility goes up and down, like most economic factors, and the "size" of the volatility is dependent on the instrument. Whether the increse is a "danger" or "blessing" depends more on your trading methodologies. I myself prefer larger volatility over smaller.

When you say volatility is increasing, what you are really saying is that the "frequency" of the swings in shortening. The 5-7 cent swings have always been there, it's just that the swing was in a freqency (time period) that you prefered (weekly/month). So if the increase bothers you then you will need to shorten your time period you use to trade or change your trading methods that capitalize on volitility in your current time frame.

What that really means, and what others are alluding to, is you can make more money in a shorter period of time. What you are saying is that you are going to loose money quicker. I guess in that regard it's just a matter of opinion about your trading capabilities. As for me, I plan to make money.

Gary

[midastrader]

" If you follow me, you'll be the richest in the shortest period. " Chart said.

[xtsunami]

guess you could not handle the opinions that you did not like and had to close the first thread on this subject, huh.

too bad, there was some advice from a master trader on that thread and you were so blind you didn't even see it.

your patterns of previous incarnations (too numerous to mention, to tedious to remember) begin yet again....

time to tak another sabbatical from moneytec until you go away again....

chio