These numbers are a measure of the amount of price change during a specific time pattern, for example, within 24 hours, a week, a month or a year, by measuring the price difference from the closing price or from the price during a past time period, for example, the same price last week or the same price within 24 hours.
If you are a trader or an investor, you will pay attention to these numbers because they represent entry and exit points, when the price goes down you buy more bitcoin and sell when it goes up.
As for how to use it, it depends on the nature of your investment, whether it is day trading, dollar-cost averaging[1] or buying at the bottom.
If you are not interested in trading, technical analysis and other things or looking for an easy way, use dollar-cost averaging.
[1] https://www.fool.com/cryptocurrency/2022/05/04/why-dollar-cost-averaging-into-bitcoin-is-the-best
Topic: What does volatility means with example? - page 2. (Read 274 times)
Hi can someone explain volatility with example, I understand what it kinda means but find it hard to implement in reality. Like for example if btc volatility is 4% does that means it goes up and down 4%?
As I understand it; volatility represents the standard deviation (SD) from the price in the timeframe you're studying, it basically tells you how much an asset's price changed over a period of time, a percentage of 4% represents less change than one of 29% in the same period.For example; if you're looking at a 24 hour period, and at different times (n) in the day, the price of Bitcoin was significantly different from the average of all price points, that represents higher deviation, than one which ic much closer.
Everywhere i find it shows formulas which i am not interested in, I am interested in how I can implement it in my trading decisions.
There are lots of formulas available for calculating volatility, depending on what asset you are looking at.To implement this in trading decisions, you would have to understand more about SD, dispersion, variance and how they are related.
Hi can someone explain volatility with example, I understand what it kinda means but find it hard to implement in reality. Like for example if btc volatility is 4% does that means it goes up and down 4%? Everywhere i find it shows formulas which i am not interested in, I am interested in how I can implement it in my trading decisions.
Volatility is the fluctuation of such price action on the market. Meaning it could go down and up on a short time period. Its really happened on crypto and stocks. The more volatile is that means a huge risk but also high reward to some traders. This is liked by some leverage traders since they are earning through it. Sometimes even greater than 4% within hour of trading volume. Either its on going up position or going down.
Could you lino to where this value is being quoted so we can see what you mean better by the 4%.
There's a chance (if it really is volatility/strength you're referring to) that an average price movement per period within a certain timeframe is being quoted. It could alternatively be a basic change in price instead though over the day or based on indicators.
There's a chance (if it really is volatility/strength you're referring to) that an average price movement per period within a certain timeframe is being quoted. It could alternatively be a basic change in price instead though over the day or based on indicators.
Hi can someone explain volatility with example, I understand what it kinda means but find it hard to implement in reality. Like for example if btc volatility is 4% does that means it goes up and down 4%? Everywhere i find it shows formulas which i am not interested in, I am interested in how I can implement it in my trading decisions.
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