In one lineVolatility is the size of movement. Momentum is the strength behind directional movement.
Quiet does not mean safe
A market can remain quiet for hours and then expand quickly after a major event. Volatility changes.
Momentum can exist inside high volatility
If candles keep expanding in one direction with limited pullback, momentum may be strong. High volatility without direction can instead produce large moves both ways.
Example
A 20-pip hourly range that expands to 80 pips after a major release shows a clear increase in volatility.
Remember this
- Volatility = how much.
- Momentum = how strongly in one direction.
- Both can change quickly.
Educational content.
This lesson is provided for general educational and informational purposes and is not personal financial or investment advice.