Part 1: Definition

Historical Volatility (HV) is a measure of the fluctuations of the stock price (i.e. how volatile the prices had fluctuated) over a certain period of time in the past. Suppose the daily closing prices of Stock X and Y for the past 10 days are shown as follows: As can be seen from the data above, regardless of the direction (up or down), the closing prices of Stock X in the past 10 days have fluctuated / changed by $2 to $5, whereas Stock Y by $1 to $3. Since given the same initial stock price of $100, Stock X has shown bigger fluctuation in terms of dollar, Stock X is said to be more volatile than Stock Y. Now, suppose Stock Z has an initial...

Market Analysis Video: This Reliable S&P Formation Could Make You Money

This short video on the S&P 500 is worth watching. It shows a detailed analysis on a particular chart formation that has proven to be very reliable in the past. If the analysis is right, we couldsee a further move and run in the S&P500 to the upside.Check it out!Other Learning Resources:* FREE Trading Educational Videos with Special Feature* FREE Trading Educational Videos: Learn Technical Analysis from Award Winning Author John MurphyRelated Topics:* Understanding HEAD & SHOULDERS BOTTOM Pattern* Options Trading Basic � Part 1* Options Trading Basic � Part 2* Understanding Implied Volatility (IV)* Option Greeks* Understanding Option�s Time Value* Learning Charts Patterns* Learning Candlestick Charts* Getting Started Trad...

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