How To Use Volatility Indicators (BBWP) In Trading Bitcoin

It's skill Saturday and the talk of today is one of my most favorite statistical and volatility based indicators which is the BBWP. The value in understanding what something like this can do is that it will give you a cis bias as to when things are most likely to expand or contract. Expansion is you know basically a reference to

very violent volatile very violent uh price action. You know whether it be to the upside or the downside and contraction is quite literally the opposite when you expect consolidation boring times. what we've been witnessing uh very recently actually um as this video is being recorded in the middle of September of the year 2023. So first

things first I need to explain what volatility actually is. So volatility is the rate at which the price of whatever asset that you're looking at increases or decreases over a particular period. Um the more you know Oxford def definition would be volatility is a dispersion of returns essentially. Um also we need to go over the definition

of percentile. Percentile is a statisticsbased um uh word and percentile essentially refers to the data at which your current read is above. So I think this will make more sense with an example. Um so before we actually get into you know the the the BBWP right here um just percentile for example I I'll bring it up. Um, if you

are at the 99th percentile, that means that your score is greater than 99% of all of the other scores. Um, that means that only 1% is better basically. And vice versa, if you know, if you're if you're 1%, if you're 1%, you're only 1% better than well, the bottom 1%. Uh, and 99% are better than you or higher than