price volatility bigger than before then?
size of trades and trade order imbalance
this means buy trade versus sell trade.
in explaining the volatility volume relation forex market,
the order imbalance in large trade size affects the return more than in smaller trade size
the largest return impact comes from the imbalance.
volatility based on changes in supply and demand.
When price supply increases prices go down.
Price Volatility bigger than before then?
Bar Charts Vs Candlestick charts
For hundreds of years, the Bar Chart has been one of the most preferred approaches to understand the trading behavior.
There is no doubt that it is very easy to understand as it gives a column-wise pictorial representation of data, especially for opening and closing amount.
However, is that enough? Well, it never is.
Candlestick Chart, a Japanese approach is a much better approach than bar chart for the detail representation.
It is very important to understand the answers of “Why” and “What” in trading and Candlestick charts give you the specific and appropriate answers for the same.
The Candlestick chart is preferred because it includes the in-depth of the trading.
The human emotions are very much a factor for the trading purpose and candlestick can help you to analyze that.
The key success formula for trading is to anticipate and forecast the future of the trading.
However, it goes without saying that past actions of the trading and the human emotions are integrated part of it.
If you don’t know how to read and understand the candlestick chart then can always help you to do that from scratch.