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Volatility indicators

Arms Index & TRIN indicator: What is it?

Arms Index and TRIN indicators are two names for the same indicator. The Arms Index is an oscillator which measures market volatility. It helps to gauge the overall sentiment in the market. The Arms Index is an oscillator and a leading indicator that helps to measure market volatility. It helps to gauge the overall sentiment […]

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Volatility indicators

Relative Volatility Index: What is it? How to trade it?

The Relative Volatility Index (RVI) is a volatility indicator. It is best to use it in conjunction with other momentum or trend following indicators to confirm trends. The Relative Volatility Index (RVI) is a volatility indicator that helps to identify the direction of volatility. Donald Dorsey developed the RVI indicator to calculate the standard deviations […]

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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 […]