Understanding Volatility Conditions
Learn to distinguish calm, compressed, expanding, and event-driven volatility regimes.
9 min read
Why volatility regime matters
The same strategy can behave very differently in calm versus expanding volatility. Reading the regime first helps calibrate expectations and risk sizing.
Compression and expansion
Periods of compression often precede expansion. The Volatility Dashboard flags these transitions so you are not caught off guard by a sudden regime change.
Event-driven volatility
High-impact macro events can spike volatility independent of technical conditions. Cross-reference the Macro Events calendar before sizing any position.
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