forex:volatility

# Forex - Volatility

Volatility Calculation Formula (Standard Deviation): The standard deviation of price data over a specified time period is employed to assess market volatility.

- The formula is represented as follows:
Volatility = sqrt(1/n * Σ((Price - AveragePrice)^2))

**NOTE:** In this formula:

**n**represents the number of periods.**Price**denotes the price at each period.**AveragePrice**refers to the average price over the specified period.

- Calculating volatility, provides an insight into the magnitude of price fluctuations, which aids in decision-making.

## Average True Range (ATR)

ATR measures market volatility.

- ATR provides information about the potential range of price movement, aiding in setting appropriate stop-loss and take-profit levels.

forex/volatility.txt · Last modified: 2023/06/29 00:58 by peter