What is price volatility?
Volatility is the price fluctuation or
change of a over a certain period of time.When the price fluctuation is high over a relatively short period of time, it is said that the volatility is high. When the price fluctuation is moderate over a short period of time, it is said that the volatility is low.
Volatility does not measure the
of the price, it is purely the fluctuation.Volatility is important for
because they profit from the changes in price — there are more trading opportunities when the volatility is high. However, during periods of high volatility, the risk is also higher.Volatility is calculated in many ways and by using many different
, such as Bollinger bands and :Read more about volatility and learn how to measure it using indicators on a
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