Quote Originally Posted by ernsttanaka View Post
Billy, The new half year and quarterly pivot points are closer together. The distance between r3 and s3 is less wide than they were previously. Could one conclude out of this that the next Quarter/half year will have a chance to be less volatile?

IWM for instance seems to be stuck between 820 and 850 (initially).

Ernst
Ernst,

This phenomenon is simply the consequence of the last quarter and semester's ranges being almost identical. So their highs, lows and closes coincide in the pivot formulas. Therefore, I don't see any reason why volatility would be lower than during the previous quarter. The main reason volatility could decrease somehow would be a sustained bullish market which is often in synch with decreasing ATR%. That's great for the robot's risk management since the trailing stop will rise much faster with decreasing ATR%.
Now, the quarterly levels seem to become preponderant in market makers' algorithms and this can only be reinforced this quarter with their semester pivots confluences. I expect these levels will be much harder to break than usual.
Billy