Question 1

What is a volatility forecast?

Accepted Answer

A volatility forecast estimates how BIG the next moves are likely to be — never their direction. Because volatility clusters (turbulent days follow turbulent days), models like EWMA and GARCH can project a statistically grounded expected move for the next bar or the next 24 hours.

Question 2

Is the TraderAI Volatility Radar free?

Accepted Answer

Yes. The radar ranks major crypto pairs, forex pairs and US stocks by their forecast next-day expected move, regime (squeeze, trending, high-vol) and 95% price range — free, no signup. Pro additionally unlocks the full forecast panel on every live chart plus an AI explanation, and a public track record page scores every forecast against what actually happened.

Question 3

How accurate are volatility forecasts?

Accepted Answer

Forecasting the SIZE of moves is a well-studied statistical problem — EWMA (RiskMetrics) and GARCH(1,1) have decades of academic and risk-desk validation. They are estimates with uncertainty, not guarantees, and TraderAI never claims to predict price direction.

Question 4

What is a Bollinger squeeze and why does it matter?

Accepted Answer

A squeeze is when Bollinger-band width compresses into the bottom of its own history — volatility is unusually low. Squeezes often precede sharp expansions (big moves), so traders watch them to prepare risk, even though the breakout direction is unknown.

Question 5

How do funding rates and open interest affect volatility?

Accepted Answer

Extreme funding, surging open interest and a one-sided long/short ratio mean positioning is crowded — the classic pre-squeeze cocktail. TraderAI scores this as a derivatives-stress reading on crypto charts and folds it into the volatility picture.

Volatilitäts-Radar

Wie die Volatilitätsprognose funktioniert

Volatilitäts-Radar

Wie die Volatilitätsprognose funktioniert