How to Think About Volatility Levels - Part 3 - Stock Volatility Box Onboarding

in this video I'll show you how to go about thinking about the volatility models so you can use them for your trading success I'll show you the differences between the hourly and the daily volatility box models along with the aggressive and the conservative by the end of this video you'll have a good understanding of the different sets of volatility models that we have now for those following along with their onboarding guide this is video number three out of nine I've estimated about four minutes but we may run just a minute or so over in case

we have a little bit more information to share now there's four different volatility models that you can download from inside of our platform you have first the hourly volatility box models and here you have two different subsets underneath aggressive hourly models and conservative hourly models the second set of volatility models you can download are the daily volatility models and within the daily you have the same two subsets aggressive and conservative now the whole idea here is if price is breaching any one of our volatility models doesn't matter if it's the aggressive or conservative hourly or

the aggressive and conservative daily that puts it on our radar so we really have these four different models that we can pick and choose between the fact that any one of those models is breaching means we have a volatility Edge something that doesn't tend to happen either in that specific hour or on that specific day is currently happening which means we have an opportunity to take advantage of that anomaly now once we get some breach occurring on any one of these models that's when we start to layer on our setup rules to pick and choose

and find the best traits we'll go through that in the next set of videos but for right now let's understand the differences between the hourly and the daily models a little bit better now the hourly volatility models have different hours for every single hour of the trading day here's an example of FedEx and you'll notice the 7 to 8 AM Pacific hour has a certain set of volatility levels this is the aggressive hourly volatility Box model and this is the conservative volatility Box model once we go to the 8 to 9 A.M Pacific hour you

can see that changes in terms of our new volatility levels for that hour same idea aggressive and conservative and as we keep changing different hours of the day we have different levels plotting that's because we're studying each and every single hour and that is the basis of us finding a volatility Edge the different levels of every single hour also gives us more setups and liquid names things like apples Amazons Facebooks Googles things of that nature are more likely to breach on the hourly volatility box models compared to our daily volatility box models now to contrast

this is what FedEx daily volatility models look like much different if I come back this is the hourly models the daily models same exact price action but we're nowhere close to breaching our volatility box levels the daily models as a result get breached less frequently but I would also consider them slightly quote unquote stronger levels it takes more to breach them more price activity more buying or more selling which is our hint now daily models is the model we started with when we first built the platform and as a result we currently have more features

in the platform for it things like the dashboard only work with the daily models for the time being the hourly was just released a few weeks ago so again fairly new now that you understand hourly and daily models and you visually see the difference between aggressive and conservative it should make a lot of sense to also understand that there would be certain times when you would have an overlap between the two when say the hourly volatility box models get breached and at the same time the daily volatility box models are breaching as well this section

right here whenever we have an overlap between the two is what we'll call the overlap and as we get to the live scanner you'll notice we pay particular attention to stocks that are overlapping now in this video hopefully you learned the difference between the two different volatility box models along with aggressive versus conservative in the next video we'll spend some time diving into our trade plan breaking down specific setups along with entries and exits