volatility clustering

253
"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).
Uwaga
test

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.
Uwaga
test

Long low volatility market. Followed by high volatility. And Price in relative terms.
Uwaga
Low relative price + HIGH volatility period ---> good opportunity long term?

HIGH relative price + LOW volatility period ---> big risk?
Uwaga
test

Low relative price + High volatility ---> opportunity. Panic sentiment
Uwaga
Strong markets ---> choppy markets (better or worse). --> strong

Wyłączenie odpowiedzialności

Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.