ATR measures market volatility by calculating the average range of price bars over a specified period — it is essential for position sizing, stop-loss placement, and identifying volatility shifts. Use our position size calculator to convert ATR readings into proper trade sizing instantly. Read the stop-loss guide and the position sizing guide to master ATR-based risk management across every market. ATR adapts to any asset — apply it in crypto, stocks, and forex for volatility-adjusted trading.
True Range = max of (High − Low), abs(High − Previous Close), abs(Low − Previous Close). ATR = 14-period smoothed average of True Range. Higher ATR = more volatile; lower ATR = less volatile.
Chaikin Volatility measures the rate of change of the difference between high and low prices, providing a unique view of how the trading range is expanding or contracting. Unlike <a href="/academy/indicators/atr" class="text-primary hover:underline">ATR</a>, which smooths absolute range, Chaikin Volatility focuses on the acceleration of range changes. It is useful in <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets and can be explored alongside other volatility tools in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.
Bollinger Bands plot a moving average with upper and lower bands set at 2 standard deviations, expanding during high volatility and contracting during low volatility to create actionable squeeze and breakout signals. The Bollinger Squeeze is especially powerful when combined with <a href="/academy/indicators/keltner-channels" class="text-primary hover:underline">Keltner Channels</a> in the TTM Squeeze setup, a favourite of professional traders. Pair Bollinger Bands with the <a href="/academy/indicators/rsi" class="text-primary hover:underline">RSI</a> to filter false signals and confirm <a href="/guides/trade-breakouts" class="text-primary hover:underline">breakout entries</a>. Set them up on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> for real-time alerts and multi-timeframe analysis.
The Mass Index identifies potential trend reversals by measuring the narrowing and widening of the range between high and low prices, generating a "reversal bulge" signal when the range first expands then contracts. It is a unique contrarian tool for <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> traders. Combine Mass Index reversal signals with momentum tools from our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> for higher-probability entries.
The Ulcer Index measures downside volatility by calculating the depth and duration of drawdowns from recent highs, providing a risk metric that focuses exclusively on the pain investors care about most. It was created by Peter Martin specifically for evaluating <a href="/market/stocks" class="text-primary hover:underline">stock</a> fund performance. Incorporate the Ulcer Index into your risk management alongside tools from our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to protect capital during volatile markets.