Volatility Indicators

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Below is a list of technical indicators (studies) that are used to measure market and security volatility and are available with our charts.

Average True Range (ATR) - The Average True Range (ATR) indicator was developed by J. Welles Wilder to measure a security's volatility. The ATR indicator does not reflect price direction and is not used to predict price. However, this indicator is widely used in technical analysis to measure the degree of price movement or price volatility. In order to more precisely reflect the volatility of an analyzed security, Wilder suggested using the previous bar's closing price to capture gaps that would not be counted by a formula based on the high-low price range only.

Fibonacci Bands - The Fibonacci Bands indicator, also called as "Bollinger Bands Fibonacci Ratio", is similar to the Standard Bollinger bands with the only difference that Fibonacci bands are based on the Average True Range (ATR) instead of Standard Deviation and uses Fibonacci ratio as multiplier.

Bollinger Bands - Bollinger Bands were developed by John Bollinger to compare volatility and relative price levels over a selected period of time.

Bollinger Bandwidth - Bollinger Bandwidth indicator is based on the Bollinger Bands and is used in technical analysis to measure the width between upper and lover bands in order to evaluate  stock's volatility.

Bollinger Percent - Bollinger Percent indicator is based on the Bollinger Bands and is used in technical analysis to locate the current close price in relation to the upper and lower bands.

Standard Deviation - The Standard Deviation is used in statistics to measure the variability or dispersion of a data set. If the data are very close to the average value (mean), we have a small standard deviation. If the data are dispersed over a large range of values, we have a large standard deviation.

Volatility indexes - The VIX (CBOE Volatility Index) is based on S&P 500 stock index option prices and measures the market's expectations of near-term volatility. VXN is based on NASDAQ 100 index (NDX) options. VXO is based on S&P 100 index (OEX) options. VIX, VXO and VXN are considered to be indicators of investor mood and market volatility.

Labels: technical Analysis, Volatility, ATR, VIX, VXO, VXN, Volatility index, Average True Range, True Range, Analysis, Bollinger, bands, Fibonacci

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