By Fari Hamzei For the purposes of this article, I assume that you are familiar with Hamzei Analytics’ Central Intelligence (CI) and Directional Volatility (DV) indicators — both are available on the eSignal platform. In case you are not familiar with them, here are the URLs to the how-to PDFs for the Hamzei Analytics CI … Read more
I am not a huge fan of technical indicators, being primarily a chartist in my market analysis. That said, I do watch the volatility-based indicators to help get an idea of how the market is doing at present and what is likely to happen in the future. The two indicators I use in that regard are Bollinger Bands and Average True Range (ATR).
In a very brief but informative article in the January 1991 issue of Technical Analysis of Stocks and Commodities, Arthur Merrill considered the question of whether the degree of volatility in the stock market is a useful indication of the market’s future course.