We all see things differently and mostly experience markets through past personal experiences which distorts what is going on. We especially get our buttons pushed during times of high volatility and uncertainty. Mapping markets simply and objectively always needs to be the starting point, to orient ourselves to “What Is” rather than what we want or don’t want. It’s not a trader’s job to predict markets, it’s our job to follow and join them no matter what they are doing. In this video, I map out the E-Mini S&P weekly chart along with a few stocks, AAPL, VRTX, AVGO, SQ, BAC, and GILD.
When volatility changes so must our stops and we need to keep in touch with this. Here I review how to calculate stops using a simple Average True Range method (ATR) that I mentioned in Foundations of Trading Part 6 Risk Management. I also go over the current 20-minute currencies to show how to keep in touch with this volatility.