How do you identify a volatile stock market?

Asked 3 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.





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