Contents Stock Market News for Dec 29, 2022 Why November’s CPI data are seen as a ‘game-changer’ for financial markets VIX Exchange Traded Products What is the Cboe Volatility Index (VIX)? Jobless filings rose last week; continuing claims hit highest since February Volatility measures the frequency and magnitude of price movements over time. The more rapid and substantial the price changes, the greater the volatility. It can be measured with historical values or expected future prices. For instance, a stock having a beta of +1.5 indicates that it is theoretically 50% more volatile than the market. Traders making bets through options of such high beta stocks utilize the VIX volatility values in appropriate proportion to correctly price their options trades. As the derivatives markets matured, 10 years later, in 2003, the Cboe teamed up with Goldman Sachs and updated the methodology to calculate VIX differently. It then started using a wider set of options based on the broader S&P 500 Index, an expansion that allows for a more accurate view of investors’ expectations of future market volatility. A methodology was adopted that remains in effect and is also used for calculating various other variants of the volatility index. VIX measures market expectation of near term volatility conveyed by stock index option prices. Stock Market News for Dec 29, 2022 As exchange-traded products, you can buy and sell these securities like stocks, greatly simplifying your VIX investing strategy. The VIX is an index that measures expectations about future volatility. It tends to rise during times of market stress, making it an effective hedging tool for active traders. Though it can’t be invested in directly, you can purchase ETFs that track the VIX. When its level gets to 20 or higher, expectations are that volatility will be above normal over the coming … Click here to continue reading…

Contents Improving your Fibonacci Confluence entries with Support and Resistance Guide to Forex Trading indicators. Fibonacci retracement factsheet Breaking Down The Fibonacci Trading Strategy A basic understanding on what a Fibonacci trading strategy can do When does your Fibonacci Retracement become invalid? You should feel comfortable practicing these strategies on a demo account before trading a live account. Candlestick patterns provide valuable insight into price movement at a glance. They tell the strength of price movement and also foretell future price moves. 22.6%, 38.2%, 50%, 61.8% and 78.6% are the most popular and officially used retracement levels. The second section deals with a range of issues faced by merchants such as goods pricing, profit calculation and currency conversion. If you want to buy near the 50% retracement level, place your stop-loss order right below the 61.8% retracement level to maximise profits and minimise losses. Luckily, you don’t really need to know how to calculate Fibonacci retracement levels. There are many ways to draw them and I can confidently tell you that the majority of what you find online is wrong, sadly. Fibonacci retracement levels are horizontal lines that indicate the possible support and resistance levels where price could potentially reverse direction. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money. Average True RangeAverage True Range helps in identifying how much a currency pair price has fluctuated. This, in turn, helps traders confirm price levels at which they can enter or exit the market and place stop-loss orders according to the market volatility. Improving your Fibonacci Confluence entries … Click here to continue reading…