Since volatility is the rate at which a stock's price rises or falls over time. Understanding volatility has become a need for every trader. Let's start with volatility, which can help you make a lot of money. Then we'll look at how you may leverage volatility to increase your trading profits. So, where do we begin? Continue scrolling.
If we look at it from the standpoint of a newcomer, it signifies how volatile the market is and how much movement you may expect. During a market shift, the volatility of a particular stock or index may be present. It means that if the volatility of Nifty is high, the chances of breaking down highs and lows of Nifty and the possibilities of an improved rally are also high.
You can learn volatility in many ways, as explained by My Trade Logic. Without using any indicators, there is a simple approach to calculating volatility. To do so, you must examine the price of the stock and the ATR (Average True Value). When the volatility of the stock is low, it indicates that volatility is low and the particular stock is not yet ready to skyrocket. Furthermore, as traders, our only aim is to make money and more money.
My Trade Logic says that using an indicator to determine volatility is another option. Here, you can use the VIX indicator; dedicated to volatility- you can use it to your advantage, but keep in mind that it has a range. If this range is less than 15 or between 10 and 15, the indication is unlikely to fall below this level. A strong rally could occur in either direction, and you should be ready for it.
If you want to know how to use volatility- it's simple. After you've grasped the concept of volatility, you'll need to learn how to read the VIX indicator, the open interest, and the volatility move in lockstep with the trend. Keep in mind that you should never trade without a stop loss. You will be left with nothing if you assume a specific risk in volatility and trade without a stop loss. Your account will be zero, and you will be unable to execute the trading owing to a lack of funds, which you will regret. Watch the video now to learn more!
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Get the best calls in bank nifty tips with Shyam Advisory.
We are one of Indian’s Leading Advisory Company, and we provide our clients with top qualified professionals and advisors for giving them the right guidance.
