Volatility Indicator – price compared to moving average
The indicator does not provide an indication of the securities price direction or duration, but the degree of price movement or volatility.
Volatility cannot predict price direction or duration, simply activity levels. Low levels indicate quiet trading (small ranges) and high levels indicate violent trading (large ranges).
ShareChart Default: 10 period
analysing stock options you can also analyse implied volatility by indicating
current interest rate and dividends if any. Implied volatility is a theoretical value designed to represent the volatility of the security
underlying an option as determined by the price of the option. The factors that
affect implied volatility are the exercise price, the risk-less rate of return,
maturity date and the price of the option. Implied volatility appears in several
option pricing models, including the Black and Scholes Options Model.
To change setting on Volatility, go to Settings>Indicators>Volatility. The above chart had the following settings: