Volatility Contraction & A Study In Memory of Bruce Hanna

Notable about current action is that the 3/10 Offset HV Indicator has fallen into “extremely low” territory. I first introduced this indicator in the July 13, 2009 blog. It looks at the historical volatility over the last 3 days versus the historical volatility over the previous 10.  Low readings in this indicator occur when there has been a sharp contraction in volatility. In that blog post I showed that these sharp contractions are typically followed by volatility expansions.

About a year ago I wrote a detailed study that examined using the 3/10 Offset HV Indicator as a filter for daytrading Opening Range Breakouts. The study is 5 and a half pages in length. I’ve never offered it through the blog before. It is only available in the members section of the Quantifiable Edges site.

I took the last week off from blogging after my father passed away. He got dementia at a young age and it took him away from us much too soon. In his memory a fund has been set up with the Alzheimer’s Association.

If you use the link below to make a donation to the Alzheimer’s Association I will happily forward you a copy of the Quantifiable Edges Opening Range Breakout (ORB) Study. The donation may be in any amount. I would ask that if you have found the blog helpful in your trading over the years that you consider a generous (tax-deductable) donation.


I will receive notification from the Alzheimer’s Association when a donation has been made, along with the person’s email. With this information I will forward a link to the Quantifiable Edges Opening Range Breakouts Study along asap. If you do not get it within a few hours, please email me at ORBstudy @ quantifiableedges. Com (no spaces) and let me know.  I apologize for not being able to automate the entire process.

About the Alzheimer’s Association (from their website):

The Alzheimer’s Association is the leading, global voluntary health organization in Alzheimer care and support, and the largest private, nonprofit funder of Alzheimer research.

More information may be found directly from their home page.