Something I've been trying to understand better through #BinancePick is the difference between volatility and direction.
A market can be highly volatile without having a clear trend. BTC might move sharply upward, drop a few moments later, and then recover again. The price is moving a lot, but that doesn't necessarily mean the market has established a consistent direction.
I think this distinction matters when looking at short-term predictions. Seeing large price movements can create the impression that a clear opportunity is forming, even when the next move is difficult to anticipate.
Volatility tells us something about the size and speed of price changes. Direction tells us which way the price is moving over a particular period. They are related, but they aren't interchangeable.
A volatile market can create more movement to observe, but it can also make short-term outcomes harder to anticipate.
When you look at BTC, do you pay more attention to how much the price is moving or to the direction it's actually taking?
A market can be highly volatile without having a clear trend. BTC might move sharply upward, drop a few moments later, and then recover again. The price is moving a lot, but that doesn't necessarily mean the market has established a consistent direction.
I think this distinction matters when looking at short-term predictions. Seeing large price movements can create the impression that a clear opportunity is forming, even when the next move is difficult to anticipate.
Volatility tells us something about the size and speed of price changes. Direction tells us which way the price is moving over a particular period. They are related, but they aren't interchangeable.
A volatile market can create more movement to observe, but it can also make short-term outcomes harder to anticipate.
When you look at BTC, do you pay more attention to how much the price is moving or to the direction it's actually taking?
