Turn Stock Market Volatility Into ‘Tradable’ Advantage

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Simpler Trading Team

10 min read

In this article:

  • Adapt to the new, uncertain stock market
  • Tools, and strategy create an ‘edge’ for traders
  • Decades of experience beat volatility

Are you having second thoughts about trading?

Are you trying to simply survive this tsunami of market volatility influenced by rising interest rates, inflation, geopolitical battles, and an unstable world economy?

Are there really any “survival” strategies for trading?

Answers to these questions, and the epiphany of what to do, may surprise you.

(Check out the free video, above, for insight into trading this changing market.)

Stock market volatility reveals ‘tradable’ assets

Managing a trading plan in this volatile stock market environment boils down to turning what is “untradable” into something “tradable.”

To get a clear picture of what to leave behind and what to target, traders can simplify the trading process using:

  • Automated tools
  • Consistent day trading formula

The uncertain environment traders are experiencing right now is truly a mess.

Volatility is on a rampage and signs point to the trading environment getting even more messy.

This tells traders that they need to adapt strategies to this new market experience.

Instead of sitting on the sidelines waiting for the market to rebound, why not use the current volatility to build a manageable trading plan?

Many traders fear the rash of sudden, aggressive shifts in price movement. That fear can be replaced with a renewed confidence using a few automated tools and a shorter time frame strategy (day trading) that targets precisely timed entries, exits, and trend shifts.

The goal is to scale in and out of tradeable setups based on what volatility reveals on a daily basis.

Even with sudden spikes in price movement, automated tools help reveal a clear view of support and resistance. This also presents trading ranges that manage risk within the volatility. 

This boils down to trading what the charts are revealing.

No magic tricks or “see the future” superpowers. This is simply using automated tools and day trading strategy to turn volatility into an advantage

Adapt today or lose opportunities tomorrow

Sitting on the sidelines pining away for a constant upward trend is not a viable trading plan. The “predictable” uptrend of 2020 and 2021 are literally in the history books.

This market has forced traders – who want to trade – to adapt or watch opportunity slip away.

Automated tools deliver what traders need to know.

Automated tools are simply trading indicators that put hours of calculations onto stock charts automatically. No manual calculations, just tools applied within a computer trading platform.

Without these tools, traders would spend hours tracking all the numbers – every day – as trading setups pass them by in real-time

Current market volatility has reached heights most traders have never seen. The sheer number of shifts and turns are almost too much for a trader to digest.

Last week the market suffered its worst losses in more than two years. This week, the market sputtered up and down before rallying higher Friday where all three major indexes spiked to more than 2% through the session.

How do traders find an advantage in see-saw market conditions?

Automated tools take in volatile market data in real-time and present a clearer view of price action and market direction (especially when the trend is unclear like in this bear market).

Which automated tools to use?

There is an entire world of stock chart indicators from which traders can choose.

Indicators work to collect price data and apply predictive calculations that complement a trading strategy. Indicators simplify price information, provide trend trade alerts, and signal potential changes in trend. 

At Simpler Trading, we focus on the tools we know work for us.

Trading current market volatility requires consistent precision in automated stock chart indicators. Take a look at these selections:

  • Hourly Price Movement Range (HPMR) Indicator – Certain trading hours are more volatile throughout the day. The HPMR indicator is designed to forecast volatility-based support and resistance in a 24-hour time frame. This indicator measures time and volatility during special economic events or highly volatile hours during the day, such as the opening bell, midday, and the close for a “next-level view” of market direction.
  • Darvas Box 3.0 – Using color-coated arrows, Darvas Box 3.0 signals traders when price has reached key levels. This alerts traders when price has selected minor low and minor high patterns. These automated arrows will signal turning points and confirmation of potentially profitable levels, and identify entries and exits. The updated Darvas Box 3.0 also signals the probability of a stall or reversal, pointing the way to spotting stronger support and resistance levels.
  • VWAP Indicator – The VWAP (Volume-Weighted Average Price) Indicator focuses on the volume of an asset. The standard deviation of the VWAP is also known as the Vscore. Sometimes volume will spike to abnormal levels, and there is a higher chance that the volume will readjust and return to the mean. Because the spiked volume has a higher chance of snapping back, traders will want to know those opportunities, and the Vscore signals these moves.
  • GRaB Candles – GRaB Candles is a price-based indicator that allows traders to understand momentum and the trend based on the candle color shown on the chart. GRaB candles show volatility and congestion in the market. The wick of each colored candle corresponds to the price range, and the body of the candle indicates the open and closing price. Candle colors show: red, bearish; blue, neutral; green, bullish.
  • Moving Averages – Moving averages can be used in connection with GRaB Candles to more precisely identify trend lines. Moving averages are foundational statistical calculations for many of the most popular free and paid indicators in trading. These can be a simple moving average (SMA) which is the sum of the average price over a previous number of time periods. The exponential moving average (EMA) places more importance on the latest price data by assigning a greater weight to the more recent prices in the calculation.

Using a combination of automated day trading indicators helps traders develop a full view of market movement and price action. The key is using automated tools, like those above, that work together to deliver the most up-to-date and accurate information in real-time. 

Build a consistent day trading formula

Developing a day trading plan in this volatile market can be beneficial to traders. What is important, like with any trading method, is personalizing a consistent day trading formula.

Simply put, day trading is buying and selling securities within the same trading day.

Day trading requires traders to make fast decisions for trades that may only last a few minutes to a few hours. Day trading can include stocks, options, and futures. A day trade is over before the end of the trading session.

This fast action comes with risk and a need for traders to monitor trades in real-time. All trading carries risk, and day trading risk should be considered by all traders. Don’t trade without knowing all money can be lost.

Like all trading, day traders try to predict the next move of an asset and profit from this action.

Day traders, just like swing traders or investors, need to develop a consistent day trading strategy – a survival formula for market volatility.

Many day traders have struggled to navigate the sudden, significant shifts in market volatility this year. Each day it seems more economic events crop up that create account-killing moves – spike rallies and gaps down.

Many traders believe volatility is something to run away from when this environment can present advantages for day traders.

A day trading survival guide includes:

  • Targeting key hours in the day to provide traders an “edge.”
  • Knowing underlying conditions and outside market pressures that drive the market.
  • Automated chart tools that guide trading decisions.
  • Insight into historical market volatility and how it affects market movement today.

Surviving the market today requires letting go of past market conditions where the trend was continually to the upside. Explosive price movements lie ahead, and trading survival depends on developing reliable resources and a consistent trading plan.

Consider day trading futures

Traders interested in gold, oil, and natural gas – commodities – can consider day trading futures.

Don’t know where to start or looking for more insight into futures trading? Take a look at the Simpler Futures online trading room. Traders can get instant access to the trading room where they can trade with professional traders five days a week. Get real-time trade alerts, take time to review past recordings, and explore more strategies within the learning center.

Veteran trader shines light on day trading

Trying to survive all the changes, twists and turns, and outright shocking movement in this volatile market can be daunting for any trader.

What if there was a way to connect with a veteran trader who exposes the market and shines a light on the possibilities and advantages of day trading?

Raghee Horner, Managing Director of Futures Trading at Simpler Trading, has three decades of trading experience and has endured historic periods of market volatility in her more than 30 years while maintaining a consistently profitable trading account.

Raghee is a stock market survivor who shares her successes with traders who want to trade.

Raghee developed the “Day Trading Survival Guide” that includes a class, indicators, and a selection of live-trading sessions during market hours.

Her trades are not hypothetical or theory. She trades in real-time and walks through the idea for trade setups, market conditions, process for entries and exits, and what she sees on the horizon.

Current market volatility could be described as “crazy,” “wild,” “uncertain,” and certainly “unpredictable.”

Raghee cuts through the confusion created by market conditions to execute well-planned trade setups.

Her trading style follows a system-inspired approach – a sequential process for identifying and building trades. As a trend trader – even in volatility – she works to identify a dominant market trend as the first step. Then she applies long-standing strategies combined with automated indicators.

This “Day Trading Survival Guide” formula allows her, and traders working with her, to approach the market more objectively, removing unsupported bias and emotions that can cloud judgment.

Are you ready to try day trading?

Sometimes traders need to “check it out” before committing to a new system of strategies and tools.

Traders considering learning more about day trading – or adding new skills – can try Simpler Day Trading. Experience day trading first-hand in a live-trading, online chat room that includes live Q&A with veteran day trading mentors. Gain immediate access to instructional videos, articles, and more. The team is ready to share their best tools and strategies for day trading in this volatile market.

Why take on the risk of trading?

The market today is different from the first of the year, and starkly different than just two years ago.

Traders must adapt to current conditions, and be nimble to continue adjusting as market volatility plays out moving forward.

Start by acknowledging the challenges – sideways chop followed by sharp rallies and gaps down, followed by more chop.

Then, develop a survival plan to take advantage of turning what is “untradable” into something “tradable.”

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