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BeginnerMarket Overview & Discovery

Market Trend, Volatility, Participation and Price Change Distribution

The four numbers that describe the market's direction, energy and width, and how to read them together.

6 min read
1

Market Trend

Market Trend shows the direction the broad market is leaning on this timeframe: the aggregate move as a percentage over a stated period, a direction such as Up or Down, and a momentum score.

Market Trend, Top Trader Flow and Volatility Index on Discovery Intelligence.
2

Volatility and the Volatility Index

Volatility on Market Ranking, and the Volatility Index on Discovery Intelligence, give one number for how jumpy the whole market is, compared with its baseline. A level well above the baseline, labelled High, means the market moves more than usual.

3

Market Participation and Coverage

Market Participation shows the share of the universe actively taking part in the current move. Coverage shows how much of the asset universe is behind the numbers on the page, so you know the figures are not built on a handful of assets.

4

Price Change Distribution

Price Change Distribution groups all assets by how much their price changed, from large falls to large gains. A distribution leaning to one side shows a broad move; a wide, flat one shows a market with no common direction.

5

Reading them together

A strong trend with high participation and a one-sided distribution is a broad, healthy move. A strong trend with low participation is a narrow move led by a few assets. High volatility with no clear trend is a stressed, choppy market.

Width before directionCheck how many assets are taking part before you trust the direction of a move.