====== 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: <code>
Volatility = sqrt(1/n * Σ((Price - AveragePrice)^2))
</code>

<WRAP info>
**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.

</WRAP>

----

===== 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|Volatility]]