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Historical volatility

The degree of movement in a market over a past time period, typically 100 days. It is normally expressed as an annualized percentage. A 100-day historical volatility of 32%, for instance, means that over the last 100 days the market has fluctuated in such a way that it would be expected to fluctuate about 32% in a year's time. If the market is currently priced at exactly 100, one would expect to see values between 68 (100-32% of 100) and 132 (100+ 32% of 100).

Articles related to Historical volatility

How to Choose the Best Volatility Trading Strategy for ETFs and Stocks
June 18, 2009
Larry Connors
Understanding the principles underlying market volatility is one thing, but in this series, Larry Connors helps you to put them into action in the markets to find the best of the best big moves. (more)
More on ETF Trading Strategies and Historical Volatility
June 17, 2009
Larry Connors
In part 4 of our series, Larry Connors takes a look at the 6-day historical volatility reading which can be used to help capture explosive moves in the markets. (more)
Using Volatility to Time Big Moves in the Market
June 15, 2009
Larry Connors
In today's trading lesson, Larry Connors shows you how to apply historical volatility to your stock and ETF trading to potentially time big market moves. (more)
How to Find ETFs and Stocks That Are About to Have Big Moves
June 12, 2009
Larry Connors
Is it possible to increase your stock and ETF returns using only price as an indicator? We believe the answer is yes, and here's how you do it. (more)
How to Use the VIX to Guide Your Trading Decisions
February 4, 2009 about VIX
Ken Trester
What does volatility mean to us as options traders? Plenty, since it measures risk and investor sentiment. Options trader Ken Trester examines why volatility is an important factor to consider before making an options play. (more)
Up, Up...Stay Away? Four Bearish Bounces for Traders
January 29, 2008 about ASCA
David Penn
Traders are never more bullish than when stocks are moving higher day after day after day. (more)
Systems of the Downs: Nine Oversold Stocks for Traders
January 25, 2008 about ENS
David Penn
When markets make short-term lows, there is often a test of those lows. (more)
Too Hot To Handle: Nine Overbought Stocks for Traders
January 24, 2008 about WMG
David Penn
When markets are making sharp moves off of the lows, there are two kinds of stocks that traders should be on the lookout for. (more)
4 Overbought Stocks for Traders
January 16, 2008
David Penn
In markets headed higher or lower, one of the great things about trading stocks is that there is always an opportunity around the corner. (more)
6 Oversold Stocks with Upside for Traders
January 15, 2008
David Penn
Do you buy stocks when they are down, or after they've already moved up? (more)
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