Volatility trading is a trading strategy focused exclusively on super local scalping situations with profit taking in a short price range. This also includes the strategy for earning on the spread.
The peculiarity of these strategies is not an attempt to pick up one price movement and hold a position, but to make a whole series of transactions within the framework of working out the same trading situation.
Working out these strategies is a classic scalping approach to making money in the market.
The article analyzes the STRATEGY FOR EARNING ON THE SPREAD, as well as two options for working out a STRATEGY FOR EARNING ON VOLATILITY.
For each of the strategies, the reasons leading to spikes in volatility, the reasons for making a decision to open a deal, methods and entry points into a position, bases and exit points from a stop loss position, methods and points for determining exit points from a take profit position are analyzed.