Volatility

trading tools of the trade

Investopedia has an article here but it doesn’t seem terribly helpful to me. Here is a document I wrote when I was trying to come to grips with it and also what my software was showing me. Volatility I have been on something of a crusade to understand volatility and how it is calculated in my charting packages Optuma and Beyond Charts Plus. First Historical Volatility. This is the standard deviation of the % change in price for a specified period (sometimes called the Interday return). There are a few different ways this can be calculated. In Microsoft Excel, it



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Bollinger on Bollinger Bands

bollinger bands indicate relative price

Click on cover for Amazon Click link below for The Book Depository Book Depository Link     I became very interested in using Bollinger Bands to help me with entries and exits particularly for mean reversion strategies on foreign exchange. Bollinger details a great methodology for determining if the current price is high or low on a relative basis. Almost every charting package these days includes the Bollinger Band indicators – or at least the simplest ones. John’s book has many more indicators and I have been able to add many of them to Optuma. If you would like these



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