CRYPTOCURRENCY ASSETS VOLATILITY

How to gauge the volatility of a cryptocurrency asset using candlesticks formation

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🕒 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.