Here is the S&P 500 Index (SPY; blueish line) plotted against the 10-day average toll hit for SPY (pink line). We tin encounter that the pinkish business of volatility looks almost similar the contrary of the blueish business for stocks. One of the corking trading challenges that I'm hearing from traders is adapting to the slower merchandise as well as narrower ranges equally markets deed higher. This is 1 argue I dry reason myself inward the daily toll targets published each morn via Twitter. Those are adjusted for the market's recent volatility, telling me how much toll crusade to aspect daily. Knowing what is expectable helps traders frame their adventure as well as vantage realistically, taking what the marketplace gives them. If yous mean value almost it, the smaller the toll moves, the to a greater extent than of import execution becomes to daily trading results.
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