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Volatility

Bitcoin Dip Buying - Part 2: Risk ManagementSo we finally got a signal today! The alert conditions of the indicator worked as intended for me and others that DM'd me. Having a signal to trade is the start but it is worthless without having a proper trade structure around it to build a strategy. To that end I have updated the indicator with an automatically drawn entry, stop, and target that can be user defined to personal risk profiles. This video talks about today's dip and explains how to use the new functionality of the indicator. Once again and always this is free for people to learn and hopefully profit. Any questions just leave comments below!
BITFINEX:BTCUSDEducation
by norok
7
Bitcoin Dip Buying - Part 0: Coding the IndicatorThis is a prequel video for a series on how to identify and buy liquidation dips in Bitcoin and other cryptocurrencies. Most aspiring traders do not have time to dig into the full process of becoming a successful trader and instead want to skip straight to making millions of dollars so this video is labeled as Part 0; it is optional. This video is for those that want an overview of Tradingview's Pine Script coding so that they may better understand what it takes to build a trading strategy from scratch.
BITFINEX:BTCUSDEducation
by norok
7
How To Utilize Difference In Price Indicator The difference in price indicator helps show volatility. In this case I am going long on Verizon but am unsure of how much to expect the price to move each day. When I add the Difference In Price indicator to my chart, I can scroll my cross hairs over and see that it changes in price about $1 a day. So for tomorrow I can expect it to go up or down $1 based on what has historically happened. The Difference In Price Indicator can be used on any candle segment, but my favorite is the day because I like knowing how much to expect a stock to change in price on a daily basis. To add the Difference In Price Indicator to your chart, you can click on the F(x) button and then click on public library. Type in Difference In Price. Add the one created by Myantman101 ( free ) Test it out on different segments and see for yourself how it can help determine what type of price change to expect when shorting or going long. Comment any questions below
NYSE:VZEducation
by Myantman101
6
VIX - Future / OptionsHello traders, a couple of facts on the VIX that you might didn’t know. VIX is a 30-day volatility measure. The calculation is based on two strips of SPX options that are used in the VIX calculation (now for example November and December option strips), the strips have a different weighting each day. Every day that passes we have fewer days in the current month and more days in the next month, for example, we have 12 days to the end of this month and 18 days in the next month and we get to 30 days, we can see that the next month has more weight. For longer-term Futures, expiring in later months they will not track VIX well. The VIX calculation can be applied to any set of options that have two strips of options in the two front-months. Because of this VIX calculation of volatility can be made for almost every stock, index, or futures. Examples: VXAPL (AAPL), VXAZN (AMZN), VXGS (Goldman Sachs), VXGOG (Google), VIXIBM (IBM), VXSLV (Silver ETF), and more. Volatility moves opposite to the direction of the stock, index, or futures almost 75% of the time. We can see in the chart that the green areas are when VIX and SPX are opposite in direction and in the red when they move in the same direction. A futures contract has an expiration date but no striking price, unlike an option contract. If a futures contract is trading at a higher price than the VIX, the futures are trading with a premium. If they trading at a lower price than VIX, the futures are trading with a discount. Example: VIX 24.3 VXZ2020 24.875 (December future) -> 24.875-24.3 = 0.575 Premium VXF2021 26.175 (January future) -> 26.175-24.3 = 1.875 Premium VXG2021 26.225 (Februry future) -> 26.225-24.3 = 1.925 Premium We can see that the prices are rising, usually when the markets are going up the longer-term futures will cost more and the futures will have premiums. If the VIX will go up and there will be a big correction or even a bear market the futures will trade with discounts. This since VIX is based on 30 days calculation. This means that the front contract (the contract this month) will have very high volatility and the long-term futures will have lower volatility because when the markets fall it is usually short but violent moves and there will be an expectation of the market to go sideways or reverse. Example: VIX 60 (December), VIX Future (January) 52, VIX Future (Febraury) 47. You can see that discounts can be quite large and the trader that would expect to profit from long-term VIX futures when the market falls, will be very disappointed. This is why usually traders buy the VIX front-month contract. One way to hedge the portfolio. (“Insurance”) Buying VIX calls compare to SPX puts. The calls are better. When buying puts on SPX about 7% out of the money, today example SPX 3567 and the strike price of the puts 3310. If the SPX will go up in price there will no longer be a 7% protection. When buying calls on VIX for protection, if the market will decline the VIX could easily go to 30 and even much higher, even if in the short term the VIX will go down. The lower the VIX when we buy the calls the effect will be much greater. Remember that in March 2020 the VIX was over 80.
SP:SPXEducation
by ZoharCho
20
Update with examples of the BBK SqueezeBITFINEX:BTCUSD is starting to show another squeeze on the 30m timeframe as price begins to consolidate. There was a great trade on the 30m using the indicator over the weekend. I also look at where another BBK Squeeze took price from the 11000 levels on the swing trading timeframe a few weeks ago. If you are patient and wait for the BBK Squeeze to filter out the noise you can find some great potential breakouts! DM me or comment for more info...
BITFINEX:BTCUSDEducation
by norok
Trading TSLA using Bollinger Bands and Keltner ChannelIn this video I use NASDAQ:TSLA with Tradingview video publishing and backtesting feature to demonstrate a trading strategy to make money using these signals. I go over how to use the Bollinger Bands and Keltner Channel indicators to find potential breakout opportunities for trades. Both the Bollinger Bands and Keltner Channel measure price volatility. Bollinger Bands utilizes standard deviations and Keltner utilizes ATR but they both look for the same thing which is price to contract or expand. Putting them together can be a powerful signal to setup breakout trades! I also show how to setup alerts in Tradingivew to turn this into an automated signal. pssst... did you notice what the Daily chart today is doing?
NASDAQ:TSLAEducation
by norok
5
My favorite indicatorsIndicators. They make us feel good, they comfort us, we love to expect too much from them then call them useless when they fail to predict the future. Or at least some people do. I myself find indicators comforting, or should I say they bring me relief. They can make every thing smoother, they throw numbers at us. The number is either above our threshold or below, the answer is binary. They give us certainty which is something we all crave in this seemingly random continuous dynamic flow of prices. I am going to start with the indicators I always use, and then present a few of my favorite ones and describe what they do and what I think of them. 1- Fibonacci Sometimes it gets called an indicator, sometimes it does not. Indicator or not there is not 1 buy or sell I do that does not involve a retracement, extension, or at least the measuring tool. I trust my eyes alot, but if I was to trust them to know if we are at 50%, more, or less, my judgements would be all over the place. The definition of a fib retracement that is given is a tool that allows analysts to find areas of support. It helps me see where we are and where to enter a trend. 23,6% and below is too early for me, 38,2% is often a nice one. Fib extensions let me see how far we really have gone, and helps with finding targets, or when to look for reversal. Depends on the context on various timeframes, this includes alot of things, depends my goals, and the pair or commodity. 2- Average True Range (ATR) I use this one all the time. This indicator measures how much the price has been moving in the past specified number of candles, including gaps. "It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations." I want to know how volatile the market is to help find out how "active" the pair is and other things, and to help define stop loss, entry, target. If I am looking at a trend on the H4 and D1 timeframes and I want to ride it I will not want to buy a pullback of 1 H1 ATR. And target more than this too. It can also be used to note how expensive - in spreads - a pair is: if the spread is 20% of the daily ATR, it will be pretty hard to day trade it. Now, the ones I do not use often. a- Moving Averages Moving averages are indicators that go on the chart and show what the average price for a certain period & timeframe is over time. The smooth out noise, and provide indications to determine what the direction of the trend is. There are several types of moving averages: Simple, Exponential, Smoothed. I do not use them. First of all my eyes are trained to detect trends and find what I want to see in the price quickly. Second, I am interested in vertical moves, both for going with or against the trend, am I so picky that the price clearly is past MAS. Third, once I identified something I like I will do a full analysis of it, very detailled, precise, using MAS would be ridiculous. b- Relative Strength Index, MACD, and Stoch Ah one of scammy "vip educators laptop on the beach lifestyle" & novice investors favorite. Those momentum indicators show strength, with alot of lag, and poor precision, the MACD also has additional info I will not get into. Some bad unprofitable market participants use it for "oversold" readings, meaning they will consistently buy in downtrends. I look at them sometimes mainly because I think they look good. They look "professional", and they can be conforting, seeing divergence triggers the rewarding center. But I would not seriously incorporate them in my activities. c- The Commitment of Traders It is a report that shows the open interest of participants in the futures market. A simplified version such as in the example below can help make decisions to buy long or short contracts. While imperfect (a big hedger with a small speculative position has all counted as "commercial") and general, it can help with one's study of a commodity. For example, gold was over-shorted at the bottom in August 2018. d- Average Directional Movement (ADX) This indicator that was designed for commodity daily charts can be used for about everything, and it shows the strength of a trend. It does so by measuring the amount of price movement in a single direction. Wilder suggests that a strong trend is present when ADX is above 25 and no trend is present when below 20. I think it is better than the RSI or worse Stoch & MACD. In particular in the following example with the smoothed version (25 DI length), otherwise it can be all over the place. I see how it could be used with an alert (when value > 25) to warn an investor a trend might be happening. Also to help filter consolidations many want to avoid, if the eyes are not trained yet to a naked chart, or if the investor is not disciplined. e- STDEV & Implied Volatility Standard Deviation is a statistical calculation used to measure the variability. Implied volatility is a metric that captures the market's view of the likelihood of changes in a given security's price. The VIX is a market index that tries to project the expected volatility (downwards because that's all they care about) in the stock market. I do not care much about those values. ATR + Fib + Measuring tool etc are better. f- Bollinger Bands These bands envelop the price using a moving average (20SMA) and standard deviations away from it. "When the bands tighten during a period of low volatility, it raises the likelihood of a sharp price move in either direction." It is supposed to help visualise tight periods before a big move. And the price often stays between the bands (that's not very helpful). Sometimes when the price really gets tight with BB it really hits the eyes (Bitcoin), the small range and then the massively expanding one. I do not really see the use for it. Bollinger Band users blind much? I have no use for them but they sure look pretty. g- Volume for Stocks & Crypto Good luck using volume with Forex. Volume tells us how much activity has happened. Did the price go up with only a few buyers? Or were there a whole lot of them? Is a support strong: Many participants are watching it? Or only a few = not that strong. There is a whole lot you can deduce with volume, but it is not the holy grail either. I rarely use it because the Forex market is OTC and we do not have that data, and with futures, it is rarely that useful. h- On Balance Volume (OBV) OBV rises when volume on up down is bigger than volume on down days. Its creator thought that volume precedes price. It was designed to help detect bottoms with divergence, and spot smart money (big institutions) buying while dumb money (retail) was selling. I doubt it will make the dumb money (that all think they are this special wonderboy) outsmart the dumb money. Retail investors are likely to call bottoms every 2 weeks and chase bottoms and get giga rekt in the biggest bear market ever. Maybe a good idea to go short when there are bullish signals in the future? I can already picture greedy and overexcited "investors" chasing every single "signal" they see. There will be many pullbacks in the big downtrend.
Education
by MrRenev
1
Change Your Chart's Timeframe in Lightning SpeedIn this video, we show you how to change your chart's timeframe with a few taps on your keyboard. While many of you are already familiar with this shortcut, we think it's worth highlighting here for those who haven't had a chance to try it. To get started, type any number on your keyboard and then press Enter. Your chart will adjust its timeframe to the number you entered. For days, type D after the number you enter. For example, 1D will show you a daily chart or 5D will show a 5-day chart. For weeks type W and for months type M. If you type 1W, your chart will show a weekly chart and if you type 1M it will show a monthly chart. This is one of the fastest ways to go from any timeframe or time interval you're interested in from minutes to hours, weeks, and months. For those who look at hundreds of charts or analyze price action, growth, and trends on multiple timeframes, this shortcut will save you time and effort. We hope you enjoyed this video tutorial. Thanks for watching and please let us know in the comments if you want us to cover any other video shortcuts, ideas or concepts.
NASDAQ:MSFTEducation
by TradingView
133
GBPUSD reacting well to volatility trading strategies According to marketkolor.com, analysis suggests that Volatility Trading strategies would likely be most successful at present. With market volatility proving critical for trader profitability, it is important to understand how it is relevant and how to trade it. The key factor is how rapidly prices are moving. The speed or degree of change in prices is called volatility. As volatility increases, the potential to make more money quickly also increases. However, higher volatility also means higher risk. Adjust you trading style and risk management to suit the volatile price action. Consider using shorter term, breakout strategies and wider stops.This is in comparison to Trend Trading strategies which may have worked better last month.Conversely, our analysis suggests that Trend Following Momentum Trading strategies would most likely be unsuccessful at present.
Education
by bulls-vs-bears-since-1981
The VIX Has Never Moved Like This!There are a lot of superlatives about the stock market this week. It's the fastest correction ever, with just six sessions between the S&P 500 hitting a new record high and a 10 percent drawdown. The VIX illustrates this trend clearly. Its overall level around 47 isn't all that high in the big scheme of things. Volatility hit 50 two years ago and in August of 2015. It also saw levels like this in 2010 and 2011. Of course, during October 2008, it went all the way up to 96. But all of those increases unfolded over weeks and months. Never has the VIX risen this far, this fast. We can see this clearly on TradingView. This weekly chart simply adds the Rate of Change indicator, with an interval of 1 period. It shows the VIX hasn't risen this quickly in a week since the data set began in the early 1990s. So, while countless articles and talking heads will speak endlessly about this current move, at TradeStation we like to stick with charts and numbers. In this case, the picture's worth way more than a thousand words.
TVC:VIXEducation
by TradeStation
1
HV - indicator, that tells you, WHEN to expect big moveVolatility is the most important thing in trading, believe or not, without volatility, you wouldn´t be able to make money, because we need price to be moving, otherwise, we can´t trade. Volatility is moving in cycles - when volatility hit certain level ( in our case this level is "3"), then it always bounce up from that level - that means, that PRICE starts moving faster. On the other hand, when volatility is too high, it usually bounce back down from certain level (in our case this level is 16) - that means, that price will calm down and the strongest move is finished. HV (historical volatility) works on every time frame, but on every timeframe, the levels are different. I usually use 1 hour TF and 4 hour TF. We have beautiful example on bitcoin right now - volatility is getting really low, so big move is around the corner. The only problem is, that we can´t recognize, what will be the direction of this big move. However, sometimes we can guess direction of this big move - for example, if we are in uptrend, price is slowly going down, volatility is on low "bouncing level", then it´s very likely, that we will see big, impulsive move to the upside and it of course works for downtrend vice versa.
Education
by Paraman666
1
W bottom BTCUSD SHORT We have yet another W bottom; certainly a common theme in the hundred and dozen or so publications I’ve done this far. Frustratingly trying to deal with this glitch that’s slicing my publications and rap as well as followers and all that stuff into two different accounts also preventing me from intraday trading on my pro account ironically so while they get sorted out (Check my chainl link publication for more info - Case anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publicationsCase anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publications so I did not want them to feel like I have been in them so rest easy loyal friends —- did not want them to feel like I have abandoned them, more like a temporary sabbatical while I sort this issue out. In the meantime I would implore you to check my Twitter/Linkdeln for any updates. I take it in this matter will be resolved within the week. W bottom signaling parabolic movement and time frame shows the short position I would take for anyone looking to dump before retracement and as always read horizontal represents the stop loss which is the figure you should always go for— Regardless of how bullish you believe the market is. Trade safely have a wonderful day and DM me if you have any questions or concerns. Happy birthday to my brother/best friend, Adam! Ll Peace & Love -@a1mTarabichi Disclaimer Market is extremely volatile so please keep that in mind do not FOMO or FUD and this is not financial advice. - Note: My main account just like all my other handles I. E. Twitter/ Linkdeln (among others) Is – a1MTARABICHI The glitch/duplicate account is identical just minus the M & 1 so “atarabichi” And so just pay attention to the same one that I’ve always been posting on there and that is the main one (Also the only one with the pro green badge) Hopefully does not cause too much confusion and will be fixed sooner rather than later Have a great evening once again -mT
BEducation
by UnknownUnicorn1445512
Hypothetical UK Election Trade ...Election results come in... (for which party will be in government). which results in a rise or fall in GBP due to it's significance (in this instance it was seen as a good result and GBP rose). -We know there is going to be volatility, so we can profit regardless of whether the price goes up or down as when the price reaches certain points (A if price rises and B if price falls) it will trigger a trade which will cancel the other one -Can be executed on many pairs/ stocks if large results are due. -Eliminates bias with OCO order. --(DISCLAIMER) Set TP and Trigger point on major support resistance, you don't want to trigger then go the opposite direction!! Straddle Trades can be good for profiting regardless on where the price goes (in times of high volatility) and you could have made some good profits here, this could be replicated for trades such as EUR/GBP, Non farm payroll, US Elections etc... and are also known as OCO (One Cancels the Other) orders
Education
by Sampdm8
ATR PRE-ENTRY STRATEGYATR PRE-ENTRY STRATEGY The Average True Range or ATR is a measure of volatility. Volaltility = the amount the price of a market moves around. The highly volitile GBPAUD moves in hughs jumps. It can move a few hundred pips in a single day. You can win or loss a bunch of money of the GBPAUD. EURCHF is a very low volaltility market. Possibly 50 pips in a single days movement. You can find this out by looking at the ATR. The ATR is simply an average of the length of the last number of candles Most use an average of the last 14 candles which is roughly 3 weeks of the price data of most markets. That will give us an idea if the market is in compression (declining) or expansion (inclining). The ATR automatically adjusts for time frame market or market compression or expansion. So it is useful for everything. Including for determining a valid stop loss or target. Also how active a market happens to be. How to use ATR as an pre-entry technique. I look for a decline in volaltility during a corase of a pattern of consolidation to gauage the compression that is taking place in the market during that consolidation. The market is like a spring. The more you compreise it the more power it generates when the compression is released. The decline of the ATR during the consolidation means a bigger explosion in the breakout from the consolidation.
Education
by Tradingstrategyguides