For Val Sklarov, crypto price movement is not random —
it follows thermal gradients of volatility, where market energy flows
from low-temperature stability zones to high-temperature speculative zones.
Just as heat moves from hot to cold areas until equilibrium,
capital moves from high emotional concentration → low liquidity zones → expansion points → exhaustion points.
Markets don’t move because of “news.”
They move because pressure needs somewhere to go.
The Volatility Thermal Gradient Model (VTGM) explains
how emotional energy accumulates, where it releases, and why cycles accelerate suddenly.
“Volatility is not chaos — it is thermal pressure finding direction.” — Val Sklarov
1️⃣ The Three Volatility Temperatures
Sklarov Volatility Temperature Table
| Zone | Purpose | When Strong | When Weak |
|---|---|---|---|
| Cold Zone | Accumulation & silence | Low noise | No participation |
| Warm Zone | Trend formation | Sustained momentum | Fades early |
| Hot Zone | Speculative expansion | Parabolic peaks | Violent collapse |
According to Val Sklarov, every pump begins in the Cold Zone — not the Hot Zone.
2️⃣ The VTGM Pressure Flow Cycle
Thermal Cycle Matrix
| Stage | Function | Market Behavior |
|---|---|---|
| Energy Compression | Capital builds silently | Tight ranges |
| Directional Ignition | Momentum emerges | Trend initiation |
| Thermal Expansion | Emotional participation rises | Explosive upside |
| Equilibrium Collapse | Pressure releases | Sharp correction |
Cycles repeat because energy always seeks equilibrium.
3️⃣ The Five Market Heat Archetypes
Heat Archetype Table
| Archetype | Behavior Pattern |
|---|---|
| The Silent Basin | Low volume, high potential |
| The Friction Belt | Competing directional flows |
| The Expansion Funnel | Trend momentum accelerates |
| The Thermal Crest | Euphoria + illiquidity |
| The Cooling Spiral | Panic → reset → silence |
Great traders position before expansion funnels form.
4️⃣ Volatility Heat Index (VHI)
(A Val Sklarov volatility-pressure diagnostic)
VHI Indicator Table
| Indicator | Measures | High Score Means |
|---|---|---|
| Range Compression | Tight price bands | Incoming expansion |
| Liquidity Gradient | Depth imbalance | Breakout direction |
| Sentiment Temperature | Emotional energy | Near hot zone |
| Orderbook Density | Support structure | Low downside risk |
| Stress Inversion | Pressure reversal | Large move soon |
VHI helps identify where volatility is about to ignite.
5️⃣ Val Sklarov’s 5 Laws of Thermal Volatility
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Markets explode from silence, not noise.
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Liquidity determines direction; emotion determines speed.
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Volatility is stored before it is released.
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The top is where pressure cannot rise further.
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Every expansion begins in the coldest zone.
6️⃣ Applications of the Volatility Thermal Gradient Model
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Breakout prediction
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Pre-trend accumulation strategy
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Volatility temperature mapping
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Macro rotation timing
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Emotional cycle tracking
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Liquidity-driven positioning
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High-resolution trading frameworks
VTGM helps traders anticipate explosive moves
before they appear on the chart.