📊 The fourth tool:
Price Volatility Indicator
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🤔 What does volatility mean?
Volatility is the rapid and sudden price movement, whether up or down.
The calm market = very dangerous! Because it often precedes a very strong move that no one expects 😨
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🔎 The most popular tools to track volatility:
1️⃣ Bollinger Bands
2️⃣ ATR – Average True Range
3️⃣ Volatility Rank & Score (available in some professional platforms)
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🔥 Let's focus on Bollinger Bands as an example for beginners:
📌 How does it work?
Bollinger Bands gives you 3 lines:
• Middle line = average price
• Two lines above and below = measuring volatility
✅ When the two lines are very close → the market is sleeping
❗ But this period is called the 'compression phase' → and usually after it, the market explodes strongly!
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🎯 So how do you use it?
1️⃣ If you see the bands are very tight = prepare for a strong move
2️⃣ Watch the breakout: Is it breaking above? Or below?
3️⃣ You can combine it with the previous indicators (RSI, Order Heatmap, Long/Short Ratio) to confirm the direction
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🧠 Note for beginners:
• The movement after the band squeeze can be an initial trap, so wait for confirmation
• Don’t enter randomly… gather more than one signal
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In the next part…
I will explain to you a hidden tool that reveals stop-loss locations for traders, and how to benefit from it instead of being a victim like them! 🩸
Stay tuned for more
