How to Spot Volatility Before It Happens! — Transcript

Full transcript

1. 0:13Hello everybody. Welcome back to another
2. 0:14video. So in today's video I'm going to
3. 0:16be explaining the standard deviation
4. 0:18squeeze in a very short period. Okay? So
5. 0:22I'm going to be using the wave 760
6. 0:24minute time frame because I was seeing
7. 0:26that currently we are in a squeeze. I'll
8. 0:28try to explain the squeeze later on and
9. 0:31what it does. So we are in a squeeze so
10. 0:33I thought that we should be using this
11. 0:35as an example. So first of all, let me
12. 0:38explain that where the standard
13. 0:39deviation is. So here this part right
14. 0:42here is the standard deviation and you
15. 0:44need to focus on the dots or even I call
16. 0:46this the line right here. This is really
17. 0:49important in the standard deviation. And
18. 0:51here the golden zone you see is the
19. 0:54squeeze. Okay, we'll come to that part
20. 0:56later on. So first of all, let's talk
21. 0:58about these dots. You see these dots are
22. 1:01red in this region right here looking at
23. 1:03my cursor. That is because the price is
24. 1:06below the vector. Okay? And if the price
25. 1:10is above the vector, you're going to see
26. 1:11that these dots turn green. Okay, so
27. 1:14it's trying to show the overall price
28. 1:16action on the standard deviation. Then
29. 1:19next up you need to be focusing on the
30. 1:21standard deviation squeeze that is the
31. 1:23golden zone.
32. 1:24The golden zone or the standard
33. 1:26deviation squeeze simply tells you that
34. 1:29the market is preparing for a volatile
35. 1:32move.
36. 1:33That's all. Okay, that's all it's trying
37. 1:34to show.
38. 1:36Right here, the market is in the
39. 1:38squeeze. So it's trying to show that
40. 1:39okay, we can expect a more volatile move
41. 1:44right here. Okay? Same thing right here.
42. 1:47Okay? And then the volatile move right
43. 1:49here. Okay? Same thing right here. Same
44. 1:52thing right here. Okay? So that is all
45. 1:56it's trying to show. This is a really
46. 1:58good tool for the people who are you
47. 2:00know,
48. 2:01more comfortable with more volatile
49. 2:03markets while trading. Like right here
50. 2:06we saw the squeeze. This was a really
51. 2:07strong one because you can see that the
52. 2:09market expanded really strongly from the
53. 2:13squeeze. Right? Looking at these dots.
54. 2:15It expanded pretty
55. 2:17in a pretty short period of period of
56. 2:19time to the middle deviation that is the
57. 2:210.8. We'll talk about that later on.
58. 2:24Right? So this was a really strong move
59. 2:26with the squeeze. Right? That you need
60. 2:28to be focusing on. It doesn't happen all
61. 2:31of the time but whenever the market is
62. 2:33in the squeeze just think that okay, you
63. 2:35know, this is my time I need to trade or
64. 2:37maybe if you do not trade volatile
65. 2:39markets, this is the time you need to
66. 2:41stay away from the markets because it's
67. 2:43going to give you a more strong or
68. 2:44volatile move if that makes sense.
69. 2:47Right? Next up we need to be talking
70. 2:49about these dots again.
71. 2:51Wherever these dots or you know, these
72. 2:54this line right here goes flat or forms
73. 2:57a reversal
74. 2:59one of the two things happen. Either
75. 3:01we're going to see a reversal, right? Or
76. 3:04we're going to see some sort of
77. 3:05consolidation. Why? Because let's say
78. 3:08that the market expands from the
79. 3:10standard deviation. I'm going to use
80. 3:11this example right here. Okay? Market
81. 3:13expands from the standard deviation.
82. 3:15That means that okay,
83. 3:17we saw a bullish squeeze.
84. 3:20Right? And the bullish squeeze gave us a
85. 3:22strong move to the upside. Of course
86. 3:24that move will, you know, go away.
87. 3:26Right? It cannot be continuous. Right?
88. 3:29So whenever this goes flat or it
89. 3:32reverses, it means that okay, the market
90. 3:34makers are done with this move right
91. 3:37here. So market is going to relax or
92. 3:40give us a reversal. And whenever it goes
93. 3:42back into the squeeze right here, means
94. 3:45that okay, the market is ready for
95. 3:48another volatile move. If that makes
96. 3:51sense. Right? That is all it's trying to
97. 3:53show. Next up we need to be looking at
98. 3:55the macro trend. So macro trend green
99. 3:58means the market is overall bullish and
100. 4:01the macro trend red means the market is
101. 4:04overall bearish. Okay? And the when for
102. 4:07example, let's say right now the market
103. 4:09is overall green. Right? Bullish with
104. 4:12the macro trend. So it does indicate
105. 4:14that there's a higher chance that we do
106. 4:17see a bullish squeeze. But right now we
107. 4:20are in the squeeze and let's see that
108. 4:22how the squeeze plays out. And one last
109. 4:25thing I need to be talking about is the
110. 4:26KNM signal. A lot of people, you know,
111. 4:29are looking at the KNM signals and some
112. 4:31of them are confused at what it does.
113. 4:34In simple words,
114. 4:36M means bearish.
115. 4:38K means bullish. Okay?
116. 4:41Now M signal forms whenever there's a
117. 4:44bearish transition below the pivot.
118. 4:47Okay? And the K signal forms whenever
119. 4:50there's a bullish transition above the
120. 4:53pivot. I will mark it on this chart
121. 4:56right here. Okay? For the
122. 4:58uh for a better explanation and then you
123. 5:01guys can look at it. Okay? I need you
124. 5:03guys to do your own homework on this
125. 5:06stuff because me just explaining to you
126. 5:09right now is not going to make a lot of
127. 5:11sense until you go to your own charts
128. 5:13and look at different stuff. Right? I
129. 5:15also saw a squeeze on the ES on wave
130. 5:18three daily and I'll try to show it
131. 5:20right now.
132. 5:21So on the wave three daily we also have
133. 5:23a squeeze. Now I will be showing the
134. 5:26after effect of this squeeze right here
135. 5:28that how it played out so that you know,
136. 5:30you guys can actually see it playing out
137. 5:33live in this video. So let's go to the
138. 5:35after part.
139. 5:38Hi. So let's take a look at the after
140. 5:39result of the squeeze we were looking at
141. 5:41on the wave three daily on ES and QQQ
142. 5:44wave 760 minute. So here we have ES wave
143. 5:47three daily. We saw the squeeze right
144. 5:49here on the M signal and then the
145. 5:51squeeze ended right here around the peak
146. 5:53of 0.6 on the standard deviation or the
147. 5:5550% band on our
148. 5:58chart right here. So this wasn't a great
149. 6:01squeeze because sometimes we do see
150. 6:03moves like from the squeeze straight up
151. 6:06to the 1.2 to 1.4 region. Now those
152. 6:09require like these big candles or you
153. 6:11know, a larger move.
154. 6:13For example, from this 80% band or like
155. 6:15transition to straight up like 10% band.
156. 6:18Now that is a strong volatile move.
157. 6:20Right? So let's take a look at QQQ wave
158. 6:24760 minute that we discussed in the
159. 6:27explanation.
160. 6:29So right here we saw the squeeze. Right?
161. 6:31On this transition right here, M signal.
162. 6:34Now from the M signal the sig the
163. 6:36squeeze ended right here at the average
164. 6:39percent band. Now this was a decent move
165. 6:42because we are looking at the wave 760
166. 6:44minute.
167. 6:46So I'm not expecting like great move
168. 6:48that we saw comparatively on the ES
169. 6:51daily. So I would consider this a decent
170. 6:53squeeze. Now this squeeze also ended at
171. 6:56the 0.5 point. Now this wasn't like a
172. 6:58strong squeeze move. Right? Now if I
173. 7:02compare to another squeeze move like a
174. 7:04strong one on this chart, it's like
175. 7:06right here. Right from this to right
176. 7:09here. Basically, this move happened in a
177. 7:12very short period of time. Right? Now if
178. 7:15we compare to this move right here, this
179. 7:17wasn't that strong. Right? And this was
180. 7:21quite stronger. That is why we saw that
181. 7:23the dots are actually going up in a
182. 7:26really fast manner compared to the dots
183. 7:29going up right here. Right? You can see
184. 7:31the difference.
185. 7:32So here we saw the squeeze on both of
186. 7:35these time frames. Now I hope that it
187. 7:37makes sense to you guys that how the
188. 7:39squeeze works out. Now I want you guys
189. 7:42to go on your charts if you have the
190. 7:44access and take a look at the squeeze
191. 7:46and how it performs on different time
192. 7:48frames and how it can match your
193. 7:50strategy that you are currently using
194. 7:52with fractals. So have a great day
195. 7:54ahead.