Volatility indicators

Volatility with the market can be measured in various ways. Several indicators let traders chart volatility so they can encompass it in their trading.

Implied Volatility (IV): What is it?

Implied Volatility (IV): What is it?

Implied volatility (IV) is a measure that helps traders to understand the chances of changes in the prices of a given security.In options, IV is the underlying instrument’s volatility. Implied Volatility? What is it? Implied volatility (IV) is a measure that helps...

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Keltner Channel Indicator: Definition & Secrets

Keltner Channel Indicator: Definition & Secrets

The Keltner Channel is a volatility based indicator.It indicates whether the market's trend is likely to continue or it may change direction.It is generally built with a 20-period EMA as the center line and two lines above at a 2 Average True Range distance. The...

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Choppiness Index Indicator: How to trade it?

Choppiness Index Indicator: How to trade it?

The Choppiness Index indicator is a volatility indicator.It determines whether the market is following a trend or the market is choppy and trading sideways. The Choppiness Index indicator is a volatility indicator that determines whether the market is following a...

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Bollinger Bands Indicator: The Complete Guide

Bollinger Bands Indicator: The Complete Guide

John Bollinger created the technique of using a moving average with two trading bands below and above it. He introduced this technique in the 1980s and he trademarked this term in 2011. Bollinger was a long-time technician of the markets. Previously, it was known as...

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Donchian Channel: Definition & Secrets

Donchian Channel: Definition & Secrets

The Donchian Channel indicator is an intraday trend following indicator that allows you to identify trends. As we all know that trade breakouts is a popular trend following strategy. Breakouts can be conveniently measured through the lowest low and highest high. It...

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Average True Range (ATR) Indicator

Average True Range (ATR) Indicator

Average True Range (ATR) indicator is one of the most influential technical analysis tools that track volatility in a predefined period of time. Unlike most of the indicators, ATR does not identify trends and only focuses on measuring volatility in a particular...

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