The Volatility Stop - The Volatility Stop Indicator helps to identify the current trend. The indicator plots a red dot above the candle sticks bars when a downward trend is detected, and a green dot below the candle sticks when an upward trend is detected. The dots are often used as trailing stops, on both the buy side and sell side.
Not many stock charting websites offer the Volatility Stop (VS) as an indicator. One that does is: www.freestockcharts.com, which I will refer to as FSC. One of the great things about FSC is that the price is live and not delayed by 15 minutes. Name another free site that gives real-time quote. I bet that you can’t! The prices are from the BART exchange, however, which has less volume than the big boys. So the live prices will differ somewhat, especially if the stock is thinly traded. Here is an image capture of the VS on FSC for DSLV (3x short silver):
Picture To Be Uploaded Soon (Click here to view chart in FireFox with Microsoft SilverLight!) ...
Using the VS, the buy signal occurs with the first green dot. The sell signal for the associate buy is when a red dot appears. More on the volatility stop in future posts. Thanks for reading!