How to trade using Volatility
Indicators needed:
- Destiny Volatility Indicator
FREE Go
here
- Slope Direction Line (also included
free)
What is the best time to start trading?
This is a common question for all of us
interested in making some quick profitable
trades. Not many of us have the ability to
sit in front of our computer for long
stretches of time just watching the charts
for the perfect trade or managing a trade we
have recently opened.
The solution is volatility. Once the big
banks and the rest of the traders enter the
market we can see the price starts jumping
around very fast. It is at this time when
the price starts moving and we can get into
a trade that should give us pips quickly and
in bunches.
But, how can we know this is happening
unless we are glued to the computer screen?
The way to do this is to use our free Volatility
Indicator. This indicator looks at the
movement of each tick of the price and
counts them. If we get say 5 ticks of
movement within 1 second we know that the
prices is about to move quickly in one
direction or the other. The indicator will
draw an arrow underneath the bar to show you
that the volatility has dramatically picked
up. Also an audio alert along with a
message box will appear telling you that 5
ticks of the price have occurred within 1
second and that traders are entering the
market right now. This is also the time you
want to get in!
Determining
trade direction
Once the
Volatility Indicator will give you and alert
and also show your a red arrow on the chart
showing us the price volatility has picked
up we need to make a logical choice on what
the direction we need to place the trade.
We can do this with the Slope Direction
Indicator. This indicator will give us the
general trade direction because we would
like to open our trade in the direction of
the prevailing trend. If the trend is up
the indicator will show a light-blue line or
if the trend is down it will show a Red
line.
Use
this trade set up at the beginning when you
see the volatility pick up for the first
time in a trading session
Trade example on
GBPJPY
Money Management
Open a 0.1
lot trade per $1000 in your account balance
and try to take as many pips as possible.
This is usually good for 20-100 pips. Look
at possible areas of resistance such as a 00
price level or other basic resistance levels
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