Bringing volatility to the day-trader's level

摘要

Volatility is a key input in trading decisions/but it is usually based on long-term data. Short-term traders need something much more timely. Here is how Market Profile can help you find current volatility to identify trading opportunities. The volatility problem for traders―what is it, how is it measured, what can it do―has been around for many years. Confusion exists because investors use a year's set of daily ranges to arrive at price range variability, which is called volatility and is equated to risk. The investor approach has trickled down to shorter-term trading, especially for options valuation. Historical volatil- ity tables are available from a variety of sources, but these data are not attuned to short timeframes of days or weeks.