What is this indicator?
Measures the rate of change in the distance between candle highs and lows so a rise or fall in volatility can be spotted earlier. A rapid rise at the bottom of a downtrend sometimes signals an approaching reversal.
How to read the chart
A rising reading means market volatility has increased and the risk of sharp swings has gone up, while a falling reading signals relative market calm.
Practical tip
This indicator doesn't show price direction — it shows the intensity of volatility; it should be viewed alongside other tools when deciding on entries and exits.