Best Volatility indicator for Dow ?

rjay

Active member
122 0
I am using a basic mechanical system to trade the Dow but it does not take into account the likelihood of the Dow breaking out into a profitable range ... in other words I cannot foresee whether the Dow will simply be moving sideways all day.

I was thinking that a Volatility indicator should help in this instance - do you agree ?? If so, which would be the best indicator to warn me of the likelihood of a breakout ?
 

Trader333

Moderator
8,590 922
A difficult question to answer but probably the use of average true range (ATR) or some use of Bollinger bands.


Paul
 

Uncle

Established member
671 2
I would agree with Trader it is difficult to answer, however try Commodity Selection Index which is a combination of ADXR and Average True Range, or Relative Volatility Index which measures the trend of the volatility.

John
 
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