Volatility Indicators
Volatility indicators in trading evaluate the performance and outcomes of trading-strategies by measuring the degree of price fluctuations in the market. Here are some of the most commonly used volatility indicators:
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- Bollinger Bands: Consist of a moving average and two standard deviation bands, indicating price volatility and potential breakout levels.
- Average True Range (ATR): Measures the average range of price movement over a specified period, reflecting market volatility.