Understanding Volatility Regimes Volatility is the market’s pulse. In a trading journal it appears as the width of daily ranges, the size of
By John316•August 22, 2026
Understanding Volatility Regimes Volatility is the market’s pulse. In a trading journal it appears as the width of daily ranges, the size of ATR values, or the frequency of break‑outs. Recognising whether the market is in a high‑volatility spike, a moderate swing, or a low‑volatility squeeze lets you align your risk exposure with the underlying environment. Identifying the regime in your journal Start each week by adding three columns to your log: ATR (14), Range % (high‑low divided by close), and Break‑out count (candles that exceed 1.5×ATR). Plot these on a simple line chart inside the journal. A sustained ATR...
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