How to predict if a market will be volatile? | Traders Hideout


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How to predict if a market will be volatile?

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What are some things to look out for that indicate a day will have some big moves? I perform way better in fast markets

One indication I always am on the lookout for is how many resting orders are stacked on the DOM.

These 2 screenshots are for CL, for two different periods of the US session (i.e. one was taken many months ago, one recently). In one you can see that each level has a depth of between ~70 and ~140, whereas in the other they are between ~30 and ~60.

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Generally speaking a thicker market is less volatile, given volatility and liquidity resting on the DOM are inversely correlated.


Last edited by xplorer; July 29th, 2018 at 10:50 AM.
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