Volatility

The idea

The size and variability of returns over a specified horizon; it is not direction.

Try the scenario

Daily returns widen from roughly 1% to 3% in both directions.

Check your understanding

Which statement is supported by this definition?

• High volatility always means falling prices.
• The size and variability of returns over a specified horizon; it is not direction.
• This concept guarantees the next five candles.

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