3 ms·
The selective timeframes showcase the volatility. If a security moves 5 points in a week, and a year later it moves 5 points in a day, it becomes more volatile.
by steveplace 18y ago
The selective timeframes showcase the volatility. If a security moves 5 points in a week, and a year later it moves 5 points in a day, it becomes more volatile.
Going up 400% in half a year versus 300% in two years is pretty volatile.
That being said, they probably use bad stats to dumb it down for the average reader. What you want to look at is the {rolling stDev, average true range, volume} to get a better feel for it.
Also, it's happened in other commodities that you can trade contracts on, but they are so thinly traded that they can make really big moves.
- breck 18y ago"Going up 400% in half a year versus 300% in two years is pretty volatile." But for all we know the latter item could have gone up 1,000,000% in the interim and then settled down to 300% at the end of two years.
- steveplace 18y agoThen they would have pointed that out. I agree with your point that it's not the best statistic to show the basis, but the underlying premise remains the same.