Short-term Trading Using Volatility Breakout Method

J k Bernstein Jake B t i Trading Webinar Series

http://www.trade-futures.com 800-678-5253

847-831-6900

Short Term Trading using Volatility Breakout Thursday 28 June 2007 © 2007 by Jake Bernstein www.trade-futures.com 800-678-5253 * 847-831-6900

What is Volatility Breakout z z z z z z z z z z z z z

The theory The rationale The logic The reality of the situation The work of Chet Keltner Buying uy g new e highs g s Selling new lows The good news and the bad news Examples and illustrations The VBS System - History Larry Williams - MDS Further examples and illustrations Revisiting the Box Theory © 2007 by Jake Bernstein www.trade-futures.com 800-678-5253 * 847-831-6900

The Keltner Approach - Buy a new 16 day high - Sell a new 16 day low - Trail a stop loss - Let’s look at some charts

Let’s Review z z z z z z z

Highest high off last 16 bars Lowest low of last 16 bars BUY on new 16 bar high SELL on new 16 bar low CONFIRM with momentum MA 14/14 What about stop and trailing stop? Time frames

V l tilit B Volatility Breakout k tM Method th d z z z z z z

The Darvas Box method Prices move in boxes Establish a box range Buy on breakout above box range Sell on breakout below box range Examples p

A th M Another Method th d MDS/VBS Use X day range z Use a MA ox the X day range z Use a multiplier of the X Day MA Range SEE EXAMPLE z

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Volatility Breakout Calculation

Buy Point

Sell Point

VBS inputs are as follows

Dow Jones Futures

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Dow Jones

Concluding z z z z z z z

VB is an effective and viable timing tool Examples were given I can be reached at 800-678-5253 or 847-831-6900 E il me if you h Email have questions: ti j k @t d f t [email protected] New Webinar series on Day Trading Best of trading Jake Bernstein

Click Here To Register For: Jake Bernstein’s Webinar Series 2: 4 Sessions On Day Trading © 2007 by b Jake J k B Bernstein t i www.trade-futures.com 800-678-5253 * 847-831-6900