JoymistaWhat Is Volatility in the Markets?
Volatility is how much price swings up and down over a period: the bigger and faster the moves, the higher the volatility.
Explained
High volatility means bigger opportunities and bigger risks at once, and usually calls for a wider stop and a smaller size. It tends to rise around major news and at the open of busy sessions, and traders measure it with tools such as ATR and Bollinger Bands.
Example
Example with made-up numbersIf gold usually moves 15 dollars a day and starts moving 40, its volatility has risen, and a stop that used to fit may now be too close.
Use it in Joymista
Related terms
- ATR (Average True Range)ATR measures the average price range per candle over a number of candles (14 by default),…
- Bollinger BandsBollinger Bands are three lines: a simple moving average (usually 20) with two bands set…
- Non-Farm Payrolls (NFP)NFP is a monthly report from the US Bureau of Labor Statistics showing how many jobs the…
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open in JoymistaEducational content, not investment advice.