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How to predict if a market will be volatile?

  #18 (permalink)

Boise, Idaho/USA
Trading Experience: Advanced
Platform: Ninja Trader 8
Broker/Data: IB, NinjaTrader Brokerage, Schwab
Favorite Futures: ES
Posts: 128 since Sep 2014
Thanks: 36 given, 222 received

A late answer. FuturesTrader 71 is very cognizant of what you are talking about. He likes to pile into a very large trade and then take profits as it moves in his direction. So he needs big markets in order to place 50 or a 100 contracts easily. I am pretty sure he would tell you that you want to trade the days when other time frame traders are active. That would be other than day traders. He makes it clear in his morning videos. Day traders follow a pretty clear set of rules when it comes to support and resistance levels, trend lines and certain moving averages. He will comment that it was clear the day traders were running the show. He will also say when the longer term big guys are active. Because they don't care about our rules and they will keep going ignoring all the stuff we have on our charts because they really don't care. As in risk parity funds lightening up or Goldman's buyback desk making sure the price is where it needs to be to unlock a CEO bonus. Mutual funds facing a liquidity crisis. The list goes on and on and on.

So if you are looking for high volatility big moves you are really saying when are the large funds likely to be active and when are they all at the Hampton's.

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