Indicator - Historic Volatility
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Calculation Historic Volatility
To calculate this indicator, we must choose the period (the last 20 days for example).Then we calculate the variation of every day during this period.Then we calculate the napierian logarithm and the variation on this data.By extrapolation, we obtain the historic volatility in %.
Interpretation Historic Volatility
When volatility is important, a trend reversal could be taking place.
