๐ How to anticipate volatility expansion
Volatility contracts before it expands.
Signals:
Narrowing range.
Very low volume.
Visible compression (triangles, flags).
Consecutive small candles.
Examples:
$SOL in a narrow range for days โ violent movement afterwards.
$AVAX compresses under resistance โ explosive breakout.
$XRP consolidates with minimal volatility โ upcoming expansion.
Conclusion:
The more compressed the price, the stronger the subsequent movement tends to be.
Volatility contracts before it expands.
Signals:
Narrowing range.
Very low volume.
Visible compression (triangles, flags).
Consecutive small candles.
Examples:
$SOL in a narrow range for days โ violent movement afterwards.
$AVAX compresses under resistance โ explosive breakout.
$XRP consolidates with minimal volatility โ upcoming expansion.
Conclusion:
The more compressed the price, the stronger the subsequent movement tends to be.