Commodity Futures Charts Trading Technical Indicators

Proper Use of Technical Indicators

Futures trading Volatility is a general term used to describe the magnitude, or size, of day-to-day price fluctuations independent of their direction. Generally, changes in volatility tend to lead changes in prices. The following indicators can be used to measure volatility:

Volatility indicators illustrate the size and the magnitude of price fluctuations. In any market there are time periods of high volatility and low volatility. These time periods come in waves: low volatility is replaced by increasing volatility, while after a time period of high volatility there comes a time period of low volatility and so on. Volatility indicators measure the intensity of price fluctuations, providing an insight into the market activity level.