Decrease in volatility means smaller intraday range?

General
1

When saying volatility will decrease, does this include day high and low as well?

Does this mean we might have to put smaller targets and SL than what we have been doing so far?

2

that stantment is said for the broader market usually, as for NIFTY or SENSEX.

and you might have noticed when broader marker is in a narrow range, many stocks move more than 4%

if you want to see volatility for target and stop-loss, see the volatility of specific stock or index ( it’s historical average range ). and you can also check https://youtu.be/IrSZBgFCf00, good video on volatility by ZERODHA

3

I use ATR to measure volatility of stock. I am thinking that it will give more idea of short term volatility than yearly average.

I am curious to know your opinion and suggestion.

Because I place my stop based on volatility.

4

volatility is a valid concept for intraday or position of maximum a couple of weeks only, as in a long run stock follows the performance of the company.

1 Like
5

stoploss has an area where its not get hited… you need to find that area…

6

Is that a trick question? Well, the calculation of volatility involves only closing price - so NO, day high and low are not included.

Yup … change in volatility should change your hit ratios of target/stoploss. If you wish to keep them constant, you should use some parameter that works in sync with volatility as suggested by @Speculator - i.e. ATR.