Markets Unlocked
The week ahead will feature some potentially market-moving datapoints. Watch, especially, GDP on Thursday and PCE on Friday. Current technical position The past week saw some of the strongest selling pressure in over a month, but buyers stepped in at the end of the week to arrest the decline, painting
Technical Patterns
Just a quick lesson here, but an important one. Take a look at the chart above. Was there anything that could have helped us predict the breakdown on that last bar? There's a lot going on on any chart. In this case, we had a long bull flag
Breakout
Volatility contraction sets the stage for a selloff.
Breakout
Volatility contraction is an important element of market action. Essentially, when a market has been quiet for a period of time, there is a higher chance of breakout trades working, or of any sharp move seeing continuation (for several bars.) Though there are many ways to quantify this volatility contraction,
General Comments
Markets alternate between periods of range expansion (usually during trends) and volatility contraction. Breakouts from periods of volatility contraction tend to be strong, and highly directional. This chart pattern in Corn futures highlights volatility contraction near the highs of a recent, large run-up; this is usually constructive and traders can