What is this indicator?
Measures how dispersed price is around its average and forms the mathematical basis of many volatility indicators. A sudden rise in it is often seen alongside major news or a break of key levels.
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.