- Average True Range
Average True Range are used to measure commitment. Expanding ranges signal increased eagerness and contracting ranges, a loss of enthusiasm.
- Bollinger Bands ?
Bollinger Bands? are powerful signals. Here are two great strategies, for Bollinger Band Squeezes and Bollinger Band Trends.
- Chaikin Volatility
Developed by Marc Chaikin. Look for sharp increases in volatility prior to market tops and bottoms, followed by low volatility as the market loses interest.
- True Range
Welles Wilder's True Range adjusts the normal High - Low daily range when there is an opening gap.
Volatility is a statistical measure of risk called the coefficient of variation.
- Volatility Ratio
Jack Schwager, in his book Schwager on Futures, uses the Volatility Ratio to identify wide-ranging days.
- Twiggs Volatility
Twiggs Volatility is a proprietary volatility indicator used to flag elevated market risk.
- Choppiness Index
The Choppiness Index is a volatility indicator developed by Australian commodity trader Bill Dreiss to indicate whether a market is trending or ranging.
- Bollinger Band Width
Bollinger's Bandwidth Indicator is used to warn of changes in volatility. A squeeze, where the bands converge into a narrow neck, often precedes a sharp price rise or fall.
Active or Reactive?
Many investors follow active strategies but end up being reactive, rotating in and out of stocks at the wrong time.
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