ETH USDT : ATR and Volatility Analysis
As you all know as a part of my daily trade series I'm publishing my trade setups and Ideas for each day.
Looking back at the past couple of days it's apparent that there is not a lot of price action or movement in the markets.
When I was trading in April and May, we could capture 150 to 200 points in a single trade. This is because there was a lot of volatility and movement in the market, which is pretty obvious since markets were at ATH in these months.
In the last couple of weeks, the market movement has drastically come down and has been stuck in the 1700 to 2900 zone.
Looking at the ATR it's confirmed that the market on average is moving about 165 - 155 points daily.
I think we can practically capture 1/4 of the ATR in any single trade. Which gives us about 40 points to play with.
Money management suggests, I increase the lot size and captures 40-45 points in the market instead of trading with low quantities trying to capture big market moves.
Just my thoughts on the markets right now. Do let me know your money management and lot sizing strategy in the comments. Would love to learn your point of view.
Looking back at the past couple of days it's apparent that there is not a lot of price action or movement in the markets.
When I was trading in April and May, we could capture 150 to 200 points in a single trade. This is because there was a lot of volatility and movement in the market, which is pretty obvious since markets were at ATH in these months.
In the last couple of weeks, the market movement has drastically come down and has been stuck in the 1700 to 2900 zone.
Looking at the ATR it's confirmed that the market on average is moving about 165 - 155 points daily.
I think we can practically capture 1/4 of the ATR in any single trade. Which gives us about 40 points to play with.
Money management suggests, I increase the lot size and captures 40-45 points in the market instead of trading with low quantities trying to capture big market moves.
Just my thoughts on the markets right now. Do let me know your money management and lot sizing strategy in the comments. Would love to learn your point of view.
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