Volatility Patterns

Volatility patterns focus on changes and trends in bar ranges. Generally, it means looking for contracted or expanded bar ranges, unlike the usual emphasis on direction changes.

Volatility patterns, a key aspect of price action strategies, focus on changes and trends in bar ranges. Instead of focusing on direction changes, this section explores contracted or expanded bar ranges and how to find trading opportunities with their help.

The concept of inside days, discussed in this guide on identifying narrow-range days, shows how these patterns signal potential market movements. Similarly, a practical framework for trading YM futures using inside bars offers an actionable strategy for using inside bars effectively.

Expanding on the theme of contraction, this strategy featuring double inside bars introduces a setup where consecutive inside bars signal potential breakout scenarios. Likewise, we will explore how the ID/NR4 pattern and narrow-range NR7 setups help to anticipate periods of increased volatility.

For traders aiming to capture reversals, consecutive WR7 patterns explains how wider-range bars can indicate market turning points. Beyond that, the innovative Popgun Bar setup combines elements of contraction and expansion for unique trade opportunities.

Volatility patterns open vast possibilities. Look at the three-bar inside bar patterns and the Yum-Yum continuation pattern approach. Both strategies showcase unique approaches to interpreting bar-range dynamics.

Have fun exploring these fascinating patterns!