TradingIntermediate

Volatility

The extent to which an asset's price or returns vary over a specified period.

PLAIN-ENGLISH DEFINITION

In more detail

Volatility describes movement, not its direction. A market with frequent large swings can have high measured volatility even if it eventually returns near its starting price. The chosen period and calculation method affect the number, and past swings do not specify the next move.

IN THE WILD

How you might use it

"Green, red, green again. My chart has had a very busy week." Those large swings produce high observed volatility for that period.

A lilac glass observed-price ribbon swings above and below a reference rail within a bounded window, with lime turning-point beads and endpoints near the same level.
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By Crypto Dictionary · Published · Updated

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