Truth be told, I'm not a big fan of low vol strategies such as calendars and diagonals, but am going to putz with one here. From a trade management standpoint, the notion is to take off the short call at or near worthless or roll it to the Jan expiry for additional credit, resulting in a Jan 20th 136.5/140 short call vertical. You then manage the setup as you...
If this can get back to a $5 will go long front and short back
AUDUSD confirming another test of its downtrend on weekly basis, by bouncing of lower 1st standard deviation from weekly (120-h) mean. Expanding volatility (marked by 3.2 standard deviations from weekly mean) is confirming the risk of further delcine. Traders can take short off the lower 1st standard deviation (at 0.6940) and stop at the weekly mean (at...
After a sharp up move earlier this week EURUSD has retraced its gains significantly. However it did not yet enter a downtrend on weekly basis - price is returning to its 1st standard deviation from weekly (120-h) mean amid compressing volatility (marked by 3.2 st deviations from the mean) Thus the price is likely to revert up to the weekly mean within a day or...
See how this dip forecasts the strength of the next move above overbought.