volatility clustering

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"high volatility is often followed by high volatility (and low by low) rather than being randomly distributed"

Markets move in cycles. Using this principle you could some times predict outcomes (regime changes).
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Highest risk should be where volatility has been downtrading for long time and is passive. Meaning stock market has strong demand and trend. And there are high expectations.

Low volatility is followed by high volatility regime.

//Maybe this is out of context, but these patterns repeat historically.
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Long low volatility market. Followed by high volatility. And Price in relative terms.
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Low relative price + HIGH volatility period ---> good opportunity long term?

HIGH relative price + LOW volatility period ---> big risk?
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Low relative price + High volatility ---> opportunity. Panic sentiment
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Strong markets ---> choppy markets (better or worse). --> strong

Penafian

Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.