Volatility is a measure of how much the price of an asset varies over time. Volatility refers to the amount of uncertainity or risk about the size of changes in a finacial asset's value. A higher volatility means that the price of the asset can change dramatically over a short time period in either direction. A lower volatility means that a financial asset's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.
How does the volatility gets calculated? It uses the standard deviation of the closing price for the preceding selected period (i.e. 30, 60...) and plots the value in relative terms (%).
Loving this but have some clarifying questions: what do the individual lines and dotys, etc mean and can you provide a quick recap of how to use them? Thanks!