JLS: Target Zone Trading Cycle & Turnaround Time
The assessment and the measurement of the price at lower bands/ceilings and at the upper bands/ceilings is the most difficult time for target zone trading and should they are established the balance for profit making.
Mixed price performance at the lower and at the upper bands/ceilings by the carry traders and momentum traders trading activity some time may lead to frustration at what prices the actual ceilings will be as the basis for market entry and risk management. However, should the price trends already established then the risk management could be managed by their implied volatility or by using their price trend channels.
Price trends of the medium term trend on the merium term target zones or the price trends of the short term trend (sterilization) of the short term target zones are consistent but with implied volatility to be the baseline for risk management.Therefore, should the price trends already established and in place, the balance is the profit zones of the target zones.
Down-trending price trends will break all kinds of supports until they reach their lower bands/ceilings and the up-trending price trends will break all kinds of resistances until they reach their upper bands/ceilings. This results no supports and resistances in target zone trading.
Mixed price performance at the lower and at the upper bands/ceilings by the carry traders and momentum traders trading activity some time may lead to frustration at what prices the actual ceilings will be as the basis for market entry and risk management. However, should the price trends already established then the risk management could be managed by their implied volatility or by using their price trend channels.
Price trends of the medium term trend on the merium term target zones or the price trends of the short term trend (sterilization) of the short term target zones are consistent but with implied volatility to be the baseline for risk management.Therefore, should the price trends already established and in place, the balance is the profit zones of the target zones.
Down-trending price trends will break all kinds of supports until they reach their lower bands/ceilings and the up-trending price trends will break all kinds of resistances until they reach their upper bands/ceilings. This results no supports and resistances in target zone trading.