| Price bar expansion-contraction provides a simple method for the trader to evaluate volatility. Trending movement generally reflects expanding bars, while rangebound periods exhibit contracting bars. "Enter in mild times, exit in wild times". Consider how well this old traders' wisdom describes a powerful strategy to take advantage of this expansion-contraction phenomenon. Simply put, your best positions will come when entering at the end of low volatility (contracting bars), and exiting on volatility peaks (expanding bars) just as a market turns. |
