How Do I Measure How Far Price Has Breached A Swing High/Low Based On Volatility?

HI, i read the book you give me .

It’s perfect. 

But, can you teach me how to measure the maximum distance the market has managed to move past the swing highs and lows based on a change in volitailty. (as you said you will show in later book, if that, when can i get your next book? any specific date?) 

Thanks

My Response:

Glad you liked the book.

The method of measuring the maximum distance isn’t just based on a change in volatility.

Instead, it also incorporates analyzing recent reversals which have occurred in the market.

This analysis aims to pinpoint what the max distance is the market has managed to surpass—a swing high or low—before ultimately reversing.

Now, you may wonder: Why only recent reversals?

Well, the reason you can only analyze these, as opposed to all the reversals over a longer timeframe (e.g., 2 years), is simple. If you were to backtrack that far, the distances wouldn’t hold accuracy. Why? Because the volatility two years ago would be too different compared to today’s market conditions.

Good news: I’ll have an article coming soon which will explain this in detail.

It’s straightforward but requires some explaining.

And yes, you’ll be able to apply this on each time-frame.

While the book only includes distances for the 1-hour chart, this method will allow you to determine distances across any time-frame you utilize.

Enjoy the rest of your week

PAN.

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