VOLATILITY INDICATORS 3

Another indicator which might be wont to live volatility is that the Donchian Channel. The Donchian Channel merely shows the high and low worth over a period of time you select. once the channel is comparatively slim, volatility is comparatively low, and once it's comparatively wide, volatility is comparatively high.

Finally, another wide used indicator is regression toward the mean. This attracts a “line of best fit” between a past worth and therefore the current worth, and marks variance limits on either facet of that line. If the channel is comparatively wide, then therefore is volatility; if it comparatively slim, then volatility is comparatively low.

That’s all for currently on volatility indicators. within the next lesson, we tend to gift a whole volatility-based commercialism strategy that uses the typical true vary indicator to spot and filter the foremost profitable trade entries.