Volatility Breakout (VOB) This strategy is better applied for long-term charts (monthly, weekly). If DOSC for a long time shows and holds some level of overbought/oversold and then suddenly breaks it by estimating new extreme levels (preferably if DOSC doubles its previous extremes), then we should wait for a 0.618 retracement after the DOSC breakout and enter in the direction of the breakout. The reason is that Volatility change of pace is usually faster than price, so a Volatility extreme appears earlier than price one. As a target you may use the new extreme DOSC level, some Fib extensions or others. Pipruit: Thanks, Commander. This is outstanding material. Commander in Pips: You’re welcome. I hope it helps. Pipruit: I see. And why are you so fascinated with DMA? P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.