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Technical Indicators Volatility

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This video tutorial will highlight additional technical indicators that are available within the Tradeshark software. 

In this video, I will focus on Tradeshark’s Bollinger bands, Average True Range, and Chaikin Volatility Index which can all be used to help gauge short term volatility in the market. 

When combined with Tradesharks proprietary trend forecasts, traders have a significant edge and are well prepared to profit as market trends change and volatility increases.

To demonstrate how effective these tools can be when combined with Tradeshark, I can utilize this chart for Pfizer stock.  Tradeshark has done an excellent job at forecasting trend changes in this market, however, at times it may be useful to use tools that can help measure short term market volatility.  Bollinger Bands, ATR, and the Chaikin Volatility Index are great tools to do just that.

To add Bolinger Bands to the chart, simply locate the bands form the Technical indicator dropdown found within the indicator tray and drag and drop onto the chart.

Bollinger bands have a wide range of applications, they can identifying overbought and oversold levels as well as be a great guide for expected volatility.

In this example we can see that during a down trend, the lower bands act as great short term price targets, with the upper bands acting as good guide for possible upside Volatility..

On up trends we have just the opposite.

Additionally, Bollinger bands will squeeze and expand, indicating decreasing and increasing volatility in the market. 

Notice how the bands squeeze together towards the middle of this chart, informing of current decreasing volatility.  This can often be a warning that volatility may suddenly increase in the near future.

However, tradeshark kept forecasting this market to continue its trend, and the increased volatility carries the market higher allowing a trader to maximize possible returns.

Tradeshark users can also benefit from tools like the Chaikin Volatility and Average True Range.  which measure volatility and can be used to place stop losses.

Chaikin Volatility allows traders to identify periods of relatively low or high volatility.  When the indicator is elevated, traders can expect increases in volatility, which can often forewarn of a trend change or reversal in the market. 

When combined with Tradeshark’s trend forecasts, traders can approach the market with much greater confidence. Notice how these two periods where the Index spikes is characterized by high volatility and a rejection of the prevailing price trend.

Lastly, the Average True Range, measures volatility as it relates to changes  in the daily price range.  This indicators value  is an ideal tool to help with stop loss placements as well as gauging the conviction of a markets move.

When using Tradeshark proprietary trend forecasts, traders have an enormous advantage in the markets, however, when combined with predictive technical indicators that utilize Tradeshark’s forecasting ability, Traders can achieve even better results from their trading.

For additional information on working with the Tradeshark software or information on additional predictive technical indicators be sure to visit the TradeShark learning Center and tutorial library. 


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