What's Happening Here?

[fordewind]

ATR? - ATR and arithmetic mean;

So the question is: How to cope with the change? - By applying correct studies(talk to some math guys to clarify more[see image attached[won`t tell you what it is, kinda secret]);

More to the point: Why does the market volatility change? - Temporary selloff guided by fear often.

 

[iccenuol]

ATR? - ATR and arithmetic mean;

So the question is: How to cope with the change? - By applying correct studies(talk to some math guys to clarify more[see image attached[won`t tell you what it is, kinda secret]);

More to the point: Why does the market volatility change? - Temporary selloff guided by fear often.

View attachment 186332

Hi fordewind.

Here's a question: Why do you personally use candles? What is there to be gained by using candles in different colours? (apologies, two questions)

Within any market session the price (bid/ask/last) goes up and down, although it can sit at certain prices for any length of time, it doesn't really have an OHLC every 1,2,10 minutes etc. Then there's the different colours, red and green (or whatever)?? Why would a trader require a colour to understand market direction?

Please understand, I'm not being argumentative here, but at some point I may have to explain things to a non-trader. In general, people want a straightforward answer, or else they begin to doubt your sanity.


Thanks for the input, buddy.

 

[fordewind]

Hi fordewind.

Here's a question: Why do you personally use candles? What is there to be gained by using candles in different colours? (apologies, two questions)

Within any market session the price (bid/ask/last) goes up and down, although it can sit at certain prices for any length of time, it doesn't really have an OHLC every 1,2,10 minutes etc. Then there's the different colours, red and green (or whatever)?? Why would a trader require a colour to understand market direction?

Please understand, I'm not being argumentative here, but at some point I may have to explain things to a non-trader. In general, people want a straightforward answer, or else they begin to doubt your sanity.


Thanks for the input, buddy.

Good question.Why would people people use colors for candles...I wish you a good luck answering to a non-trader.

 

[tiddlywinks]

the market does seem to move within certain price ranges...but it changes. So the question is: How to cope with the change?

More to the point: Why does the market volatility change?

Answer... VOLUME. If you care "why" as in "reasons" volume increases or decreases, you are on your own. I don't care "why", I only care that I recognize the change and trade accordingly.

Backdrop: I trade futures intraday. I use time-based charts. My definition of volatility (for my type/style of trading) is bar range.

Volume and volatility are unquestionably linked.
Here is a percentile breakdown of the 5 minute ESM8, RTH hours, since rollover day.

As you can see, bar range (aka volatility) is clearly linked to volume.