Which indicators can help analyze market volatility? 💥💥💥 According to Mlion.ai analysis, based on the current market environment in July 2025, the following indicator system can effectively help traders analyze and predict market volatility: 📊 Core volatility indicators 1. Average True Range (ATR) The most practical volatility measurement tool: - Calculate the average value of price fluctuations within a certain period - ATR increase indicates increased volatility, and the opposite is true for decreases - Used to set dynamic stop loss: stop loss distance = ATR × 2-3 times - Practical application: Reduce positions when ATR > 20-day average, and increase positions appropriately when ATR < 20-day average 2. Bollinger Bands The perfect combination of volatility and trend: - The distance between the upper and lower rails reflects the current volatility - Price touching the upper rail indicates high volatility, and touching the lower rail indicates low volatility - Key signal: The narrowing of the Bollinger Bands indicates that a big market is coming - Trading strategy: layout during low volatility periods, reduce positions during high volatility periods 3. VIX panic index (crypto version) Thermometer of market sentiment: - Measures market expectations for volatility in the next 30 days - VIX > 30 indicates market panic, usually a buying opportunity - VIX < 15 indicates that the market is too optimistic and needs to be cautious - Features of 2025: With the entry of institutional funds, the overall level of VIX has declined 🔍 Technical analysis indicator combination 4. Relative Strength Index (RSI) Accurate judgment of overbought and oversold: - RSI > 70 and price hits a new high = top divergence, volatility may decline - RSI < 30 and price hits a new low = bottom divergence, the probability of rebound increases - Volatility application: When RSI oscillates around 50, it is usually accompanied by high volatility 5. MACD momentum indicator Early signals of trend changes: - MACD histogram contraction indicates a decrease in volatility - The increase in trading volume accompanied by the golden cross and dead cross indicates an increase in volatility - Practical skills: MACD divergence often indicates that large-scale fluctuations are coming 6. Volume indicator (OBV) True reflection of capital flow: - Price increase and volume increase = healthy rise, volatility is sustainable - Price increase and volume reduction = false breakthrough, high volatility is unsustainable - Key signal: abnormal volume is often accompanied by high volatility 📈 Advanced volatility analysis tool Source: mlion.ai