1. Cryptocurrency volatility
The source describes Bitcoin's daily volatility as 2–5 times that of stocks. High volatility creates both risk and opportunity.
2. Volatility measures
- ATR: Average price range over a period.
- Bollinger Band width: Wider bands indicate higher volatility.
- Historical volatility, HV: Standard deviation of past price changes.
- Implied volatility, IV: Inferred from the options market.
3. Volatility strategies
Bollinger Band squeeze
Narrowing bands, or a squeeze, are interpreted as a sign that a large move may be approaching. The source suggests entering in the breakout direction.
Volatility breakout
Enter with the trend when a sharp rise or fall follows a period of sideways trading.
Volatility reversion
Use the tendency for extreme volatility to revert toward its average.
4. AI adapting to volatility
The original guide describes NOONOO TRADING as automatically adjusting position size and leverage according to market volatility.
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