Table of contents

Volatility Indicators

Last modified 13:15, 5 Nov 2012
Table of contents

Volatility Group

Volatility is a general term used to describe the magnitude, or speed, of historical price fluctuations independent of their direction. Generally, changes in volatility tend to lead changes in prices.

Volatility can also be viewed as a measure of our uncertainty about future price movements, and more specifically uncertainty about the proportion of those changes.

It is the annualized standard deviation of the rate of change of prices. Therefore it is a relative term and a volatility level that is high for one instrument may in fact be very low for another.

Valuable information can be extracted from this knowledge and traded in a great number of ways, particularly in relation to options. Some traders even utilize this information to assist in the placement of stop losses! It should be noted, however, that volatility is non-directional.

Your SOFTWARE has the following Volatility indicators:

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