Volatility has Gone Volatile

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Volatility has Gone Volatile

Post  harpal1980 on Wed Dec 02, 2009 11:00 am

The last couple of trading days have presented extreme volatility as various news events have hit headlines. The VIX ( volatility index) has bamboozled traders as the index has jumped, only to retrace back down to lower levels.

On the following chart we can learn a few important things:

1. Within its recent channel, the vix should remain volatile. This could occur due to volatile stock sessions.
2. A gap on the chart doesn't mean that a new trend is starting, especially if the gap occurs within a range.
3. Hanging man candlesticks will often signal a reversal to the down side.
4. The current chart is now closing its gap, which is a good sign for bullish traders

Read the full article at Dodjit.com

harpal1980

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