Monday, 27 November 2017

Some Prominent Methods to Measure the Volatility of the Market

Volatility is the up and down situations of the market, which can be measured by the standard deviation of the stocks. To measure the volatility there are several indicators.
intraday tips

In this article, few most commonly used strategies are discussed to measure the volatility of the stock that will help you in generating accurate share market tips. Following technical indicators are simple and easy to implement, hence these are favorite of technical analysts and traders.

Bollinger bandwidth is derived from the Bollinger band indicators. The indicator implies a formula of subtracting the lower Bollinger band value from the higher Bollinger band value. In other words, it calculates the percentage difference between the upper band and the lower band. Bandwidth is directly proportional to Bollinger bands. As the Bollinger bands get narrow the bandwidth decreases and as the Bollinger bands widen up the bandwidth increases.

Average True Range indicator is almost similar to the high minus low indicator but it also takes into the report of overnight gaps in its formula. This indicator usually calculates the average value over 14 days. However, technical analysts use it for any time period according to their need for greater sensitivity. The ultimate goal of the ATR indicator is to find out the present and possible volatility of the stock from historical prices.

You may suffer from loss if you do not follow certain rules while trading. Out of many rules, calculation of volatility is one of the essential rules that need to be implemented by the traders. One can easily make money by trading but can easily lose all its wealth if not executed in a well-planned manner and by generating free intraday tips. One should always buy and sell stock only when they have analyzed the market deeply with the help of some very common and trustful indicators and technical oscillators.

Technical indicators will surely make your decision wisely and help you in earning fat profits. However, implementing technical indicators is not that easy; hence you could take help of technical analysts or get yourself enrolled with some good advisory firm for their impactful services. Money Classic Research is one of the best advisory firms.

No comments:

Post a Comment