/biz/ - Business & Finance

>Chart of OHLVC data
>Change it from regular candles to HA candles
>Take the % change over 30 days
>Look at the stdev of that % change
>A market can trend up, down, or sideways and have low volatility, what matters is divergence therefore opportunity
>In other words price is irrelevant, what matters is the change of volatility
>Stocks are therefore valued based on potential and future growth/variance, with the current market value just being a realized snapshot of current prices of that volatility
>Eg volatility is the rate of change (acceleration) of a price, if it's constant then the trend doesn't change and will continue
>Changes in HV mean a change in trend, therefore changes in realized price
Look at pic related for SIGA for example. This is from Jan 1st to friday, it was generally cyclic, then an outside event (pox news) changed the pattern on the stock