Historical Volatility – Part 1: Definition

Historical Volatility (HV) is a measure of the fluctuations of the stock price (i.e. how volatile the prices had fluctuated) over a certain period of time in the past.Suppose the daily closing prices of Stock X and Y for the past 10 days are shown as follows:As can be seen from the data above, regardless of the direction (up or down), the closing prices of Stock X in the past 10 days have fluctuated / changed by $2 to $5, whereas Stock Y by $1 to...

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More Understanding of HISTORICAL VOLATILITY

In the previous article, we had explained what Historical Volatility is very briefly. In these series, in order to gain better understanding and hence be able to interpret its meaning better, we’ll discuss more in-depth about Historical Volatility. As usual, I’ll try to share my understanding about this topic as simple as possible, so that it’ll be easier to understand for everyone. Click the following link to read each article: 1) Definition of Historical Volatility 2) Formula to calculate HV 3) Steps to calculate HV using MS Excel (with example) 4)...

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Market Analysis Video: This Reliable S&P Formation Could Make You Money

This short video on the S&P 500 is worth watching. It shows a detailed analysis on a particular chart formation that has proven to be very reliable in the past. If the analysis is right, we couldsee a further move and run in the S&P500 to the upside.Check it out!Other Learning Resources:* FREE Trading Educational Videos with Special Feature* FREE Trading Educational Videos: Learn Technical Analysis from Award Winning Author John MurphyRelated Topics:* Understanding HEAD & SHOULDERS BOTTOM Pattern* Options Trading Basic – Part 1* Options...

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