At first when we look at the spread monster chart, we see the future expected volatility, the purple bar is actually volatility the following day
See the blue lines- that is actually the wall in which price tries to stay in
Seeing the averages shown
Those averages are fractal geometric averages in which price tends to say in, It is a bit misleading but the best way to describe how the data is moving.
See the yellow line 50% of the time price stays there and if you notice you will find the volatility graph, sinusoidal wave graph, odds graph represent the same data just shown in a different way.
For the walls 75% of the volatility stays there.
and it makes more sense when inside spread monster clicking around, they show the relation ship of the chain to the current price green line, when the green line gets too far from the apex of the chain, typically we get a reversion step in, at the moment its not too far away, but, its certainly bullish, green line above white line = bullish, and green line below white line = bearish
See how the price tends to stay in those averages
An example for more clarity
QQQ W7/60min spread monster volatility graph, based on the information here we are near the equilibrium with the option chain, the purple x show where currently the price is,
price action is expected to expand into , this is looking forward quantity 5,60 min aggregations forward
this implies that 432.35 to 435.26 hold the next 5x60 min range
do for the next 300 min , it is suggesting that price will be consisted between that range
Remember this is mathematics, it shows what can happen but does not garruntee it will happen.
