When reviewing several consecutive price movements, do you look at the sum of each percentage change, or go back to the starting and ending prices for the entire period?
First, take a look at this data: $LINK Binance Spot, Oct 25, 14:00–15:00 (Beijing time). The price fell 0.75% over the hour, with a trading volume of 388,800 USDT—0.61 times that of the previous hour. The closing price for the period was 11.362 USDT.
To calculate returns across several consecutive time windows, you generally multiply the growth factor for each window, then calculate the total change. That’s because each subsequent window’s percentage change is based on a new starting price. Simply adding the percentages can lead to significant errors when volatility is high. To check the price change over the entire period, you can also compare its starting and ending prices directly.
#LINK #CryptoChat
First, take a look at this data: $LINK Binance Spot, Oct 25, 14:00–15:00 (Beijing time). The price fell 0.75% over the hour, with a trading volume of 388,800 USDT—0.61 times that of the previous hour. The closing price for the period was 11.362 USDT.
To calculate returns across several consecutive time windows, you generally multiply the growth factor for each window, then calculate the total change. That’s because each subsequent window’s percentage change is based on a new starting price. Simply adding the percentages can lead to significant errors when volatility is high. To check the price change over the entire period, you can also compare its starting and ending prices directly.
#LINK #CryptoChat