In my serie about Markets, I came up with the possible idea that :
"the most volatile an asset is, the harder it is to predict"

my assertion is that if a market is volatile, it means that it has more noise, that drives the markets up and down

it doesn't mean that the asset wil necessarily move up or down really strongly, but rather wil oscillates up and down more strongly, hence generating more noise and becoming harder to predict.

what do you think ?

Jeff

Less volatile markets are always easier to predict. Ideal for longer term, trend trading positions.

Highly volatile markets are harder to predict but are provide the perfect environment for scalping and counter trend trading.

In short, yes I agree with you your statement above.

boytoy wrote: Wed Oct 05, 2022 4:04 am Less volatile markets are always easier to predict. Ideal for longer term, trend trading positions.

Highly volatile markets are harder to predict but are provide the perfect environment for scalping and counter trend trading.

In short, yes I agree with you your statement above.

Correct.

High volatility pairs will give you the best conditions for breakout trading, scalping and reversals. Especially for intraday trading. Your best trades will be made in volatile markets.

Low volatility is much more predictable, suited for investing, long-term trades and just playing it safe. But it's like watching paint dry.

I've been thinking about this renko for a long time.

andrei-1 wrote: Wed Oct 05, 2022 4:26 am I've been thinking about this renko for a long time.

Sorry you've lost me there. What do you mean by that? Renko is unreliable for volatile pairs?

ChuChu Rocket wrote: Wed Oct 05, 2022 4:43 am What do you mean by that?

When I see how moving averages suffer during jumps. I'm thinking about a new kind of renko graphs. Disassemble long candles, But collect them if the body of the candle turned out to be small (large shadows). Do not touch the small candles. If the standard candle is 0.5%. Then draw a candle of 2% as 4 by 0.5%.

It's interesting to see what happens.

ChuChu Rocket wrote: Wed Oct 05, 2022 4:14 am Correct.

High volatility pairs will give you the best conditions for breakout trading, scalping and reversals. Especially for intraday trading. Your best trades will be made in volatile markets.

Low volatility is much more predictable, suited for investing, long-term trades and just playing it safe. But it's like watching paint dry.

For now, i like watching paint dry

Jonln wrote: Wed Oct 05, 2022 5:00 am For now, i like watching paint dry

Haha! But does it stress you out? Not seeing much movement in a pair while you are in a trade?

boytoy wrote: Wed Oct 05, 2022 5:10 pm Haha! But does it stress you out? Not seeing much movement in a pair while you are in a trade?

I like to enter mainly on the 4hr or sometimes the 1hr if I'm fairly confident about the trade. I have a day job so that keeps my mind busy, we all like to see our trades move in a straight line towards our target but price doesn't move like that. It will give us pain before it gets there

Personally I prefer the less volatile pairs. They seem to respect levels way more which in turn has my win rate much higher way smaller loses. The CHF pairs in particular move very consistently from zone to zone.