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Glossary › volatility

Trading glossary · indicators

volatility

How much and how fast prices jump around. Calm markets move a little; wild markets move a lot.

The fuller meaning

The size of price swings over a period, measured by ATR, standard deviation or Bollinger Band width, and in options by implied volatility. Low volatility often precedes bigger moves; high volatility widens stops and shrinks position size for the same risk.

volatility.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence