VOLATILITY INDICATORS 2

VOLATILITY INDICATORS 2

It is potential to place 2 ATR indicators on a similar chart, with a shorter amount in one and a extended amount within the alternative. Then you'll see whether or not recent volatility is comparatively high or low, relying upon whether or not the shorter-term ATR is higher or under the longer-term one.

Another volatility indicator is that the Bollinger Band. This indicator shows a straightforward moving average, with equal bands indicating normal deviations of worth. These show worth area unitas that are doubtless to contain the present worth over ensuing candle holder. you'll learn additional concerning Bollinger Bands in our Bollinger Band course.

If you place a Bollinger Band on a worth chart and scroll back, you may notice there area unit times once the bands area unit abundant narrower, and alternative times after they area unit abundant wider. after they area unit comparatively slim, volatility is low, and after they 

area unit comparatively wide volatility is high.