CRYPTOCURRENCY ASSETS VOLATILITY
How to gauge the volatility of a cryptocurrency asset using candlesticks formation
Go Back
🕒 5:44 PM
📅 Jul 09, 2025
✍️ By Princeland
Large Price Swings
1. Long Wicks: Candles with long wicks (upper or lower shadows) indicate large price swings, suggesting high volatility.
2. Big Bodies: Candles with large bodies (the difference between open and close prices) also indicate significant price movements.
Frequent Reversals
1. Pin Bars: Pin bars, or candles with long wicks and small bodies, can indicate reversals and increased volatility.
2. Doji Candles: Doji candles, which have small or no bodies, can also indicate indecision and potential volatility.
Increased Trading Range
1. Expanding Range: If the trading range (high-low) is expanding over time, it may indicate increasing volatility.
2. Breakouts: Candles that break out of established trading ranges can also signal increased volatility.
Other Indicators
1. Average True Range (ATR): You can also use the ATR indicator to measure volatility, as it calculates the average range of price movements over a given period.
By analyzing these characteristics, you can get a sense of the volatility of a cryptocurrency asset using candlesticks.