Trading glossary
Volatility
Volatility is the degree of variation in a market's price over time, usually measured by indicators like ATR or standard deviation. High volatility means larger moves and larger risk per trade, which changes position sizing and stop placement. Strategies that work in one volatility regime often fail in another, so reviewing results against market conditions matters. A journal records the conditions around each trade so the pattern becomes visible. In DuskAnalyst you can tag trades by market regime and review whether your performance is consistent across calm and volatile periods.
Why it matters for your trading journal: Volatility is the degree of price movement, and it changes position sizing, stop placement, and which strategies work at all. Journaling the market regime around each trade explains why results shift.
Example: Example: a strategy that thrives in high volatility can bleed in a calm market; the journal shows the regime each trade lived in.
What is Volatility in trading?
Volatility is the degree of variation in a market's price over time, usually measured by indicators like ATR or standard deviation. High volatility means larger moves and larger risk per trade, which changes position sizing and stop placement. Strategies that work in one volatility regime often fail in another, so reviewing results against market conditions matters. A journal records the conditions around each trade so the pattern becomes visible. In DuskAnalyst you can tag trades by market regime and review whether your performance is consistent across calm and volatile periods.