March 2017 represents a new 90 Year Record Low in the Average Weekly Range as a percentage closing price. It was as low as 1.29% in March.
Did you know that there was nearly a 40 year period from 1965 to 2004 where the Average Weekly Range was never below 2%.
The last time in recent years it was near these levels was 2007. We all know what happened next. We don't call tops and bottoms based on just a few historical data points. What this chart means to us as short term traders is that we add some balance to our portfolio with more counter trend strategies. What if the market continues to trade like this? What if we get a new all time spike in this indicator. We believe that we are prepared for either scenario with the strategies in our portfolio.
We go over the highlights in the video below as volatility and range are a big deal to us as traders.