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Volatility indicators

Full Explanations of the Historical Volatility

Historical Volatility is a measure of movements of prices over a specified period of time. It deals with measuring the level of price fluctuations of stock prices from its average price over a specified period of time. It helps trader quantify how volatile a stock is and how likely it is to show extreme moves. […]

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Volatility indicators

Bollinger Bands Width & %B: Tactics

Both the Bollinger Bands Width and the Bollinger Bands %B are indicators based on the Bollinger Bands. The Bollinger Bands Width indicator shows the width of the bands (how wide they are at any moment). The Bollinger Bands %B indicator shows the relative position of the price within (or outside) the bands. Bollinger Bands Width […]

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Volatility indicators

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 traders to understand the chances of changes in the prices of a […]

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Volatility indicators

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 Keltner Channel is a volatility based indicator that […]

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Volatility indicators

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 trend or the market is choppy and trading sideways. It determines only the choppiness […]

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Volatility indicators

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 trading bands, but with time, he evolved this concept and […]

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Volatility indicators

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 functions to plot three types of bands. The first band is an upper […]

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Volatility indicators

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 market. However recent developments suggest that most of the traders have added ATR […]