🚀 Hey Traders! Have You Ever Felt Lost in the Chaos of Market Fluctuations?
What if I told you there’s a powerful tool that can help you cut through the noise and give you a statistical edge to predict SUPPORT and RESISTANCE movements with confidence?
Let me take 5 minutes of your time to introduce you to something that could transform your trading game: Expected Range Volatility (ER) .
What is Expected Range Volatility (ER)?
The Expected Range (ER) is a framework that helps traders understand how much an asset is likely to move within a specific timeframe. Based on CME market data and Nobel Prize-winning calculations, price movements within the expected volatility corridor have a 68% probability of staying within those boundaries.
💡 Key Insight: When the price approaching certain levels, there’s a 68% chance the price won’t break through those boundaries. This means you can use ER as a powerful filter to identify more precise entry and exit points for your trades.
Why Should You Care About ER?
When I first discovered the ER tool, it felt like stumbling upon a gold mine in the trading world. Here’s why:
It’s free and available on the CME exchange’s website.
It’s underutilized —95% of traders don’t even know it exists.
It provides statistical clarity in a world full of uncertainty.
I remember the first time I used ER in my analysis—it completely changed the way I approached intraday trading. Now, I never make a trade without checking the ER data. It’s become an essential part of my strategy.
How to Use ER in Your Trading
1️⃣ Input the Data: Head over to the CME website, plug in the necessary parameters, and get your ER values.
2️⃣ Set Boundaries: Use the ER range as a guide to set potential support and resistance levels.
3️⃣ Filter Trades: Only take trades that align with the ER framework to improve your precision.
A recent example is the Japanese yen futures market.
Don't be confused by the fact that we take futures levels, it can easily be plotted on a spot chart for forex market (the dollar/yen).
Limitations to Keep in Mind
While ER is a powerful tool, it’s not a crystal ball. Here are some limitations:
Market Dynamics: Short-term price movements can be unpredictable due to sentiment, news, or economic events. ER provides a statistical estimate, but it doesn’t guarantee outcomes.
Assumptions: The formula assumes price movements follow a log-normal distribution , which may not hold true in all market conditions.
Your Turn: Are You Using ER in Your Strategy?
💭 Here’s the million-dollar question: Are you leveraging the power of Expected Range Volatility in your trading? If not, why not start today?
💬 Share your thoughts in the comments below:
Do you currently use ER or similar statistical tools?
Want to Dive Deeper?
If you’re ready to take your trading to the next level, don’t miss out on our all-in-one resource designed to help you master tools like ER and other valuable sources to gain market edge!
🔥 Remember:
No Valuable Data = No Edge!
What if I told you there’s a powerful tool that can help you cut through the noise and give you a statistical edge to predict SUPPORT and RESISTANCE movements with confidence?
Let me take 5 minutes of your time to introduce you to something that could transform your trading game: Expected Range Volatility (ER) .
What is Expected Range Volatility (ER)?
The Expected Range (ER) is a framework that helps traders understand how much an asset is likely to move within a specific timeframe. Based on CME market data and Nobel Prize-winning calculations, price movements within the expected volatility corridor have a 68% probability of staying within those boundaries.
💡 Key Insight: When the price approaching certain levels, there’s a 68% chance the price won’t break through those boundaries. This means you can use ER as a powerful filter to identify more precise entry and exit points for your trades.
Why Should You Care About ER?
When I first discovered the ER tool, it felt like stumbling upon a gold mine in the trading world. Here’s why:
It’s free and available on the CME exchange’s website.
It’s underutilized —95% of traders don’t even know it exists.
It provides statistical clarity in a world full of uncertainty.
I remember the first time I used ER in my analysis—it completely changed the way I approached intraday trading. Now, I never make a trade without checking the ER data. It’s become an essential part of my strategy.
How to Use ER in Your Trading
1️⃣ Input the Data: Head over to the CME website, plug in the necessary parameters, and get your ER values.
2️⃣ Set Boundaries: Use the ER range as a guide to set potential support and resistance levels.
3️⃣ Filter Trades: Only take trades that align with the ER framework to improve your precision.
A recent example is the Japanese yen futures market.
Don't be confused by the fact that we take futures levels, it can easily be plotted on a spot chart for forex market (the dollar/yen).
Limitations to Keep in Mind
While ER is a powerful tool, it’s not a crystal ball. Here are some limitations:
Market Dynamics: Short-term price movements can be unpredictable due to sentiment, news, or economic events. ER provides a statistical estimate, but it doesn’t guarantee outcomes.
Assumptions: The formula assumes price movements follow a log-normal distribution , which may not hold true in all market conditions.
Your Turn: Are You Using ER in Your Strategy?
💭 Here’s the million-dollar question: Are you leveraging the power of Expected Range Volatility in your trading? If not, why not start today?
💬 Share your thoughts in the comments below:
Do you currently use ER or similar statistical tools?
Want to Dive Deeper?
If you’re ready to take your trading to the next level, don’t miss out on our all-in-one resource designed to help you master tools like ER and other valuable sources to gain market edge!
🔥 Remember:
No Valuable Data = No Edge!
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.