How do you identify a volatile stock market?
Asked 5 years ago
Which indicator is used for volatility in the market?
Andrew Moran
Wednesday, November 17, 2021
The volatility of a stock market is when the price of a benchmark index, stock, or other type of investment security rises or falls in a specific period.
If volatility is high, the risk is greater - and vice versa.
So, what indicators do you utilize to determine stock market volatility?
Here is a brief list:
Cboe Volatility Index (VIX): This is a gauge of market volatility (anything above 30 indicates increased volatility).
Bollinger Bands: Two typical deviations above and below the 20-day moving average (a line between the two bands).
Average True Range (ATR): The highest value generated by one of three equations: the session's high subtract the current day's low, day's high minus the previous day's close, and the previous session's close minus the current day's low.
Please follow our Community Guidelines
Related Articles

How to Identify Good Long-Term ETFs to Invest In
Filip Dimkovski
May 19, 2021

24Option Review: Account Types, CFDs, Safety, and More
Filip Dimkovski
December 23, 2024

The Future of Crypto Regulation with Trump: A Critical Turning Point for the Digital Asset Industry
Adam Walker
January 15, 2025
Related Posts
Andia Rispah Igobwa
Is It Possible to Buy Too Many Stocks?
Sofia Thai
How Does Stock Market Tax Work?
Can't find what you're looking for?
