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.
Please follow our Community Guidelines
Related Posts
Sofia Thai
How Does Stock Market Tax Work?
Andia Rispah Igobwa
Is It Possible to Buy Too Many Stocks?
Can't find what you're looking for?