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


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How to predict if a market will be volatile?

  #15 (permalink)

Minneapolis MN
 
Trading Experience: Advanced
 
Posts: 17 since Mar 2018
Thanks: 36 given, 32 received

Relative volume and 'pace of tape' indicators are good ways of quantifying activity, and might help you identify the type of conditions you're interested in. And as mentioned, the ATR.

You can also watch for specific chart patterns such as breakouts of coiling/contracting patterns and key S/R levels, as they often correlate with increased price movement. And if you're 'fundamentally' oriented, you could time with key data releases, which can bring about increased volatility (Or too much ;-)

...you also might try 'working backwards' by identifying and avoiding conditions that aren't favorable to your trading, which could be easier to isolate. Hope this helps.

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