What is this indicator?
Calculates price's actual volatility based on historical data rather than market expectations. Comparing it to the derivatives market's implied volatility can reveal trading opportunities.
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.