UNIT 5
Volume & Volatility
Volume describes participation; volatility describes the dispersion of price changes.
MovementWide rangeSmaller size
How broadly a move is traded and how much prices tend to vary.
- Sizing positions
- Evaluating breakouts
- Volume regimes differ
- Volatility can jump abruptly
Using the same position size after volatility doubles.
Volatility clusters over time, but forecasts remain uncertain and jump risk persists.
60-SECOND CHEAT SHEET
Remember this.
- 1More volatility → less size
- 2Volume can confirm
- 3Stops do not eliminate gaps