13.2
Three Rules of Volatility
So, once you understand market volatility and why it is important to measure it, how do you know what to do with these measurements and apply them to your trading? Instead of looking at the causes of volatility, we look at its consequences, and outline three probabilistic rules which leading data scientists have observed in large-scale volatility studies of market prices and other similar data sets. Once you understand these three rules of volatility, you can use volatility to find higher-probability trade entries and become a more sophisticated and profitable trader.
Video Tutorial
Lesson Quiz
Follow us on:
