Volatility Indicator | Technical Indicators | BCI Futures
LENGTH 10 Length of Average on TrueRange
Plot1 = Volatility(LENGTH) function
The Volatility indicator measures market volatility by plotting a smoothed average of true range. As the number increases, the market is more volatile.
The concept of Average TrueRange can be used in determining how far from the market your protective stops need to be placed so as to avoid whipsaws.