Redefining Volatility And Position Risk by C.A. Kase, C.T.A.
ARTICLE SYNOPSIS ...Redefining Volatility And Position Risk by C.A. Kase, C.T.A.
A method on looking at the volatility of intraday price bars using a stop system called the ""dev-stop.""
Volatility is the key to understanding market behavior. Volatility is the change in price and thus, by
definition, is directly related to price. I normally use true closing range (TCR) as a measure of volatility
rather than the annualized price probability that options traders employ. The true closing range is the
largest absolute value of three possibilities: (1) high minus low, (2) high minus previous close or (3) low