What Are Volatility Indicators & How To Trade Them

Volatility Indicators

Volatility indicators are a type of technical analysis tool that are used to try and determine the overall market volatility and for potential exit and entry points into the markets. What are Volatility indicators? Market volatility moves in cycles of highs and lows. Volatility tells traders about the direction of the current market and indicates future price movements. Traders need to look for different kinds of volatility for price movements: They are: Historical volatility – calculated from previous price changes. Future volatility – makes predictions about future movements. Forecast volatility – an overall estimate of future volatility. Implied volatility – …READ MORE