The Truth About Volatility by Jim Berg
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:2 (14-20): The Truth About Volatility by Jim Berg
Many indicators can help identify volatility. But can you use them to target specific price areas for entry signals, trailing stops, and profit-taking opportunities?
Typically, volatility indicators are used to determine
the direction, strength, and momentum of a security. The average true range (ATR), one of the more popular volatility indicators, measures volatility by looking at the average price ranges over the past x number of periods, taking gaps into account.
The true range indicator is the greatest of the