The above SPY chart has a simple indicator in the bottom pane displaying what I call the ADR ratio.
The ratio is calculated by taking the daily range/average price over the past 10 sessions.
As you can see since the beginning of March the level of intraday volatility has been slowly creeping higher after hitting levels we hadn’t seen since October.
This isn’t necessarily a call that we sell off or head lower – simply that we could expect more range expansion and short-term trading opportunities over the coming weeks regardless of direction.
Below is a chart of the VXXB sinking back into the
Ultimately as traders, we can profit from either direction if we let go of our biases and remain open to possibilities.