Handling Short-Term Volatility with a Longer-Term Method
Submitted by A Dash of Insight
Another post from the road…
Every trading system has a time frame. What works for short-term trading may be completely wrong for longer-term methods. In the extreme volatility of the last two weeks, we are sure there are some traders who are buying every dip and selling every rally. This works fine in a volatile but rangebound environment. It will quit working when the trader unsuccessfully sells short at what appears to be a top.
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