Favorable risk-adjusted returns can be, at times, as difficult to attain as a porcupine in a balloon factory. Forces are constantly at work to ensure that neither of these occurs. What follows will outline an emerging solution for forecasting technical price and volatility value levels. The solution is termed Volatility-Based Support Resistance (VBSR).
You will be able to understand how VBSR enables risk analysts, portfolio managers, and trading execution teams to forecast the best price levels for accumulation. Additionally, light will be shed on identifying points where market-implied volatility can be forecasted to alter its prevailing directional track.
Proper risk governance & oversight mandates that we execute careful processes for selecting opportunities. Steps to include macro market influences, investment mandates, and price/value forecasting involve multiple groups in the decision framework. Processes consume time and cause opportunities to be missed. Time, not unlike confirmation, consumes Alpha.