Signals from the volatility spread have been flickering on the daily chart – bearish, bullish, bearish, bullish. To filter, I am staying bearish against the peak of the original bearish signal of 31 December 2013 at 115.71.
Financial markets are predictable because segments of price action fit together in a limited number of patterns that are not random. Markets are unpredictable too because there is enough variability in the patterns to hide the trend at some stages of development. I am fascinated by the market and spend a lot of time working to identify price trends so I can exploit them for profit.