In the 4h timeframe, the decreasing amplitude of price waves indicates a loss of volatility.
Volatility is a variable that when low indicates settlement, and therefore any movement can cause surprise. That is why the lower the volatility, the greater the explosiveness of the price at any given time.
The same happens in reverse, when there is a lot of volatility, a surprise does not affect market sentiment as much, because it is already "surprised".
This eurusd idea shows two possible scenarios:
-the price makes a classic bullish break
- the price breaks below making the majority of stop-loss in the red rectangle jump, and immediately rises upwards.
Volatility is a variable that when low indicates settlement, and therefore any movement can cause surprise. That is why the lower the volatility, the greater the explosiveness of the price at any given time.
The same happens in reverse, when there is a lot of volatility, a surprise does not affect market sentiment as much, because it is already "surprised".
This eurusd idea shows two possible scenarios:
-the price makes a classic bullish break
- the price breaks below making the majority of stop-loss in the red rectangle jump, and immediately rises upwards.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.