volatility vs smoothness

K

Koros

Hi,
a trend move can be volatile, as market by bollinger band width... but that volatility can exhibit wild swings, or smooth, grinding behavior with very small swings.
So a pure volatility based indicator like BB doesn't help qualify a move with small or large swings.

What indicators or combo of indicators could be used to qualify both volatility and smoothness?
 
There is no indicator that will tell you how

messy/chaotic/erratic/spiky the market is moving,
or how smooth / gentle / decisive the market is moving.

Just use naked eyes to look at the candlesticks and that should suffice.


BUT you will hear there is such a magical indicator that will
tell you whether the market is chaotic or trendy.
 
Koros said:
a trend move can be volatile

that volatility can exhibit wild swings, or smooth, grinding behavior with very small swings
More...

It helps to view things, trading charts in this case, from multiple angles and perspectives.

Use different display options...such as a 10 minute smooth line, mountain, 15 min line chart, 1 min chart from different website charts.
You'll grasp the overall greater, wider, scale, situation of things.

I never just stare at one style of chart configuration, from one website source. That can stale and cloud and dull your mind, clarity and vision and understanding.
 
MA;
+ including but not limited to 50dma + 50/55 period moving average...........................................................................Maybe more useful than Keltner channels , but I've used both.
 
Koros said:
Hi,
a trend move can be volatile, as market by bollinger band width... but that volatility can exhibit wild swings, or smooth, grinding behavior with very small swings.
So a pure volatility based indicator like BB doesn't help qualify a move with small or large swings.

What indicators or combo of indicators could be used to qualify both volatility and smoothness?
More...
Custom.
 
lindq said:
ATR - Average True Range
More...

Right. Also look at the height of the daily candles on a 90 day daily candlestick chart, increasing whole real body heights indicate increasing volatility, which you can also see with the ATR.

If you take a look at last week's S&P daily candlestick chart for example, you could see that the volatility was declining significantly,, candles were small, which after an uptrend is often a reversal signal, which is why I knew to be short bias in today's market
 
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