Volatility quantifies market risk and uncertainty by assessing how much price deviates from its average.

Formulas

$Volatility_{t} = \sqrt{\frac{1}{n}\sum_{i=1}^{n}(r_i - \bar{r})^2}$

Signal

• High volatility → increased risk and opportunity.

• Low volatility → market stability or consolidation.

Available Metrics

• 30-Day Volatility

• 180-Day Volatility