Volatility Analysis
figure 21.20 Volatility in Price Fluctuations Contained by Bollinger Bands on the
Natural Gas Daily Chart.
Source: MetaTrader 4figure 21.21 Volatility in Price Fluctuations Tracked by the Bollinger Bandwidth
Indicator on the Natural Gas Daily Chart.
Source: MetaTrader 4- Difference in price between the high of the current bar and the close of the
previous bar - Difference in price between the low of the current bar and the close of the
previous bar
See Figure 21.22.
A simple average of the true ranges over a specified number of bars is first
calculated. The conventional or default lookback period is 14 periods. Once this