Volatility of an item is how much the graph goes up or down. If the graph is flat then it is said to have low volatility. MerchStation generates the volatility of each graph. It is expressed as a percentage. Essentially it is a calculation of standard deviation.
Why is this important?
When items have low volatility, up to 40% they are ideal for fundamental trading, where you buy below the daily average and sell above daily average.
Items of high volatility are better suited to technical trading where you look for buy and sell indicators, most likely buying above daily average and expecting the item to go up.
Normally in RuneScape I would buy at a discount of 2.5% for a volatility of 25%. If the volatility were 30% I might buy at a discount at 3.0% Some items have a volatility 0f only 8%. They are difficult to trade at a profit and I would buy at a discount to market of less than 0.8%
This video explains the meaning of an item being over sold. When traders panic sell, they sometimes sell below what the fair value should be and this is known as being over sold
Hey glen, I haven’t seen you around lately can you help me?
You are going to find it harder to get in touch with me unless you achieve higher ranks.
Right now I am working with the higher ranks on leadership principles, so please direct your initial questions to the Lieutenants, Captains and generals
Player Vs Player has had significant demand for all combat items such as rune scimmy’s, arrows, runes etc increasing dramatically in price. For the short term at least, people are not skilling as much but swapping to PVP!