A simple narrow range trading strategy. http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Volatility is cyclical, we have situations where volatility expands and then contracts again and the process repeats. A lot of studies have been done that suggest that after a contraction in volatility we are going to get an expansion after. The thesis of this simple setup is that once volatility contracts we want to get on board the expansion in whichever way it is expanding. One way of defining a volatility contraction is using what is known as Narrow Range 7 and Narrow Range 4.

You can use this strategy as a leg to get into a broader setups. In fact there are plenty of ways to use this strategy; the studies revolve around the fact that when you get a volatility contraction over 7 days then something is likely to happen. Sure there will be plenty of times when you get a fakeout so perhaps you could add a volume filter to it.
Narrow Range 4?

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