Volatility Indicators

Volatility describes the day-to-day movement in prices (up or down). The theory is that a change in volatility tends to lead to a change in price. For example: Bollinger Bands are volatility indicators and if the price touches or penetrates either band, it could indicate a price reversal. The distance (or gap) between the upper and lower bands indicates the volatility level – the wider the gap, the higher the volatility.

Volatility Indicators Useful in Forex?

Andrews’ Pitchfork Yes

Chikou Span, Senkou Span, Tenkan Sen, Kijun Sen (Ichimoku) Yes

Day Open Close Yes

Envelope Yes

Fibonacci Arcs, Fans, Retracements Yes

Fractal Yes

Gann Lines, Fans, Grids Yes

Ichimoku Yes

Linear Regression Channel Yes

Linear Regression Trendline No

Median Price Yes

Pivot Points No

Projection Bands No

Projection Oscillator No

Quadrant Lines No

Speed Resistance Lines No

Tirone Levels No

Trendlines Yes