Volatility is movement, not direction
Volatility measures how much price moves, up or down. A stock can be highly volatile in an uptrend or a downtrend. It matters because it determines how much you can win or lose over a given period.
ATR
Average True Range averages the true range of recent candles, the largest of high minus low, high minus previous close and low minus previous close. A rising ATR means larger swings. Traders often use a multiple of ATR to place stops.
Bollinger Bands
Bollinger Bands plot a moving average with bands two standard deviations above and below. Wider bands mean higher recent volatility; a squeeze means it has fallen.
Trend strength
ADX measures how strong a trend is without saying which way it points. Low ADX suggests a range where trend indicators tend to whipsaw.
Practical takeaway
Size positions to volatility: the same rupee risk means a smaller position in a wilder stock.
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See this in Technical Analysis.
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