Volatility
STEP 1 · LEARN
Volatility measures how much price fluctuates over time. High volatility means large, wide swings; low volatility means calmer, tighter movement.
Volatility isn't good or bad on its own — it changes what kind of setup conditions make sense.
STEP 2 · SEE
HIGH VOLATILITYWide swings, larger range between ticks.
LOW VOLATILITYTight range, smaller moves between ticks.
STEP 3 · PRACTICE
High volatility generally means...
ASmaller price swings
BLarger price swings
CNo price movement
DGuaranteed profit
CORRECT ✓
High volatility describes larger, wider price swings over the observed period.
NOT QUITE
Think about what 'high' implies about the size of the swings, not the outcome of a trade.