Concepts
One idea at a time, explained in plain words and shown at work in a real week.
287 concepts, A to Z
Volatility compressionWhat does an unusually quiet week in a market tell a trader about risk and about what may come next?Volatility dragHow do large price swings quietly shrink compounded returns even when the average price change looks unchanged?Volatility mean reversionWhy does unusually high or low volatility usually drift back towards normal, and what does that mean for risk?Volatility of volatilityHow much does the size of a market's swings itself change from week to week?Volatility targetingHow do traders adjust position size so that a quiet week and a wild week risk roughly the same amount?Volatility-based position sizingHow do traders size a position so that one normal price move costs the same amount, whatever the market's volatility?Volume surgeWhat does it mean when a market trades far more than usual, and what does that activity tell a trader?Volume-weighted average priceWhat does it mean when an average price gives more weight to levels where more money actually traded?Walk-forward testHow do you check whether a trading rule would have worked without letting it see the answer in advance?Wave count invalidationWhat price would prove a wave count wrong, and why should that price be stated in advance?Weekend liquidityWhy can prices move more sharply on Saturdays and Sundays in a market that never closes?Weekend tradingCrypto trades every day, so why should someone taking risk treat Saturday and Sunday as days when anything can happen?Weekly candleHow does one candle summarise a whole week of trading, and what does that summary hide?Weekly returnHow much did a market change over a week, and why does one number hide how it got there?WickWhat does the thin line beyond a candle's open and close tell a trader about where price went and came back from?Win rate and payoffWhy can a strategy that wins most of the time still end up losing money overall?Z-scoreHow do traders turn a raw price move into a number that says how unusual it really was?
Research notes on real market weeks, not investment advice. Sources: Binance spot BTCUSDT and ETHUSDT 1-hour candles and USD-M perpetual funding rates; weekly figures computed by WSTiger.