volatility contraction Archives • The Blog of Adam H Grimes

The power of an inside bar

Post author:AdamHGrimes
Post published:10/28/2020
Post category:Technical Patterns
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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…

Chart of the Day: AAPL

Post author:AdamHGrimes
Post published:12/05/2012
Post category:Breakout / General Comments / Volatility
Post comments:2 Comments

Volatility contraction sets the stage for a selloff.

Chart of the Day: Volatility Contraction in Soybeans

Post author:AdamHGrimes
Post published:08/17/2012
Post category:Breakout / General Comments / Volatility
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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,…

Chart of the Day: Volatility Contraction in Corn Futures

Post author:AdamHGrimes
Post published:08/07/2012
Post category:General Comments
Post comments:2 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…