Friday, December 21, 2012

Raising volatility before turning points?

For many people this may be quite obvious, but often volatility raises before local extremes (such as turning points).

This may serve as either the signal to close existing position or open the new position opposite to the current trend.

But of course, this is not always this simple :)

Fig. FW20 and volatility

BTW: The currently increased FW20 volatility may signal that some local extremum, or even a turning point, may be close for the main index of the Warsaw Stock Exchange.

Nevertheless, the mid term outlook for the market seems pretty bright as based on the volume-price analysis presented yesterday.

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