Volatility Indicators

Volatility describes the day-to-day movement in prices (up or down). The theory is that a change in volatility tends to lead to a change in price.

For example: Bollinger Bands are volatility indicators and if the price touches or penetrates either band, it could indicate a price reversal. The distance (or gap) between the upper and lower bands indicates the volatility level – the wider the gap, the higher the volatility.

Volatility Indicators Useful in Forex?
Andrews’ Pitchfork Yes
Chikou Span, Senkou Span, Tenkan Sen, Kijun Sen (Ichimoku) Yes
Day Open Close Yes
Envelope Yes
Fibonacci Arcs, Fans, Retracements Yes
Fractal Yes
Gann Lines, Fans, Grids Yes
Ichimoku Yes
Linear Regression Channel Yes
Linear Regression Trendline No
Median Price Yes
Pivot Points No
Projection Bands No
Projection Oscillator No
Quadrant Lines No
Speed Resistance Lines No
Tirone Levels No
Trendlines Yes

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