How to calculate the timing in price action?

[Shawty_]

Hello everyone,

Is anyone willing to give their hard earned 🙂 insight into trade timing? For example, we know trend happens and volatility happens, but what tools do we have to time it? Stock XYZ is trading at $45 and correlating with the uptrending market with an IV of approximately 15%. Today it is up $1.35 and has gone up consistently over the last 3 days. We know someday soon it will correct. We also know it might continue going up. We can implement a range bound strategy, but if we think it will be AROUND $45 + or - in the next 7 days, is there a way to give that hypothesis any support? How do we know we are choosing the right time range (1 wk) for the given movement?

Thank you all for your help 🙂

 

[Tone104]

You might get some of the answers you're looking for in Investopedia. However, getting perfect timing on a trade is difficult. We make our decisions based on probabilities and we will never get that right all the time, it's hoped however, that we make more winning trades than losing one's.

 

[ChrisDouthit]

If you’re going to be trading based on volatility, you need to have an IV Rank plug-in, to make it easy to understand when volatility is high or low in what levels you should be buying and selling.