> For the complete documentation index, see [llms.txt](https://guide.moontrader.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.moontrader.com/en-moontrader-docs/market-concepts/volatility.md). # Volatility **Volatility** is the speed and amplitude of an asset's price change over a period of time. High volatility — price moves actively. Low volatility — price changes slowly. *** ### High Volatility **Signs:** * Large candles on chart * Wide movement range * Rapid direction changes **Advantages:** * More earning opportunities * Fast profits **Risks:** * Higher probability of losses * Stop-losses trigger more often * Requires quick reaction *** ### Low Volatility **Signs:** * Small candles * Narrow range * Sideways movement **Advantages:** * Less stress * Predictable movement **Limitations:** * Fewer earning opportunities * Requires more time *** ### Causes of Change **News and events** — volatility drops before news, rises after. **Trading time** — higher during active hours, lower at night. **Market sentiment** — panic or euphoria increase volatility. *** ### How to Trade #### During High Volatility * Reduce position size * Widen stop-loss * Take profits more frequently #### During Low Volatility * Use tight stop-losses * Look for range breakouts * Be patient --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://guide.moontrader.com/en-moontrader-docs/market-concepts/volatility.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.