What is this indicator?
Measures the actual realized volatility of price over a past period, as opposed to implied volatility, which is derived from options prices. Comparing current historical volatility to its long-term average shows whether the market has become calmer or more turbulent than before.
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.