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 ATR, which smooths absolute range, Chaikin Volatility focuses on the acceleration of range changes. It is useful in stock and forex markets and can be explored alongside other volatility tools in our indicator guide library.
Chaikin Volatility = [(EMA of High − Low today) − (EMA of High − Low N periods ago)] / (EMA of High − Low N periods ago) × 100. Default period is 10 for the EMA and 10 for the ROC. Rising values mean the high-low spread is widening; falling values mean it is narrowing.
Standard Deviation measures the dispersion of closing prices from their mean over a given period, providing the mathematical foundation for <a href="/academy/indicators/bollinger-bands" class="text-primary hover:underline">Bollinger Bands</a> and many other volatility tools. Rising standard deviation signals increasing volatility across <a href="/market/stocks" class="text-primary hover:underline">stocks</a>, <a href="/market/crypto" class="text-primary hover:underline">crypto</a>, and <a href="/market/forex" class="text-primary hover:underline">forex</a>. Review our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to see how standard deviation powers multiple volatility-based trading tools.
Donchian Channels plot the highest high and lowest low over a specified period, forming a simple but effective volatility envelope and breakout system that powered the legendary Turtle Trading strategy. They are widely used in <a href="/market/forex" class="text-primary hover:underline">forex</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a> for trend-following breakout <a href="/strategies" class="text-primary hover:underline">strategies</a>. Compare Donchian Channels with <a href="/academy/indicators/bollinger-bands" class="text-primary hover:underline">Bollinger Bands</a> and <a href="/academy/indicators/keltner-channels" class="text-primary hover:underline">Keltner Channels</a> 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.
Historical Volatility measures the annualised standard deviation of past log price returns, giving traders a statistical benchmark for how volatile an asset has been. It is essential for options pricing and risk management in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and increasingly in <a href="/market/crypto" class="text-primary hover:underline">crypto</a> derivatives. Use our <a href="/tools/calculators/position-size-calculator" class="text-primary hover:underline">position size calculator</a> to incorporate HV into your risk management workflow.