@extra...The screen shot is too small to make out anything meaningful. Can you enlarge it somewhat?

@scubidu...you could use standard deviation. Try using bollinger bands on your chjart and that would give you a good measure of the volatility.

Updated trading sheet for 26th August 2010 available, now with a daily analysis of the previous day's trades.

http://penwise.webs.com/...rading-secret?page=last

(Right click image and open in new tab or window)

31st August 2010 Trading Analysis: As mentioned in my previous post, I determined to transfer my trading platform and account to a Virtual Private Server, and more specifically to ForexVPS. Unfortunately, my demo expired and I was unable to continue testing my strategy on that account. I therefore moved to FxPro, who offer unlimited time Demo accounts as well as some really tight spreads. So this is day 3 of trade. Let's see how the week pans out as the markets have been super volatile today/

Bollinger bands DO MEASURE volatility. Would you trade in a narrow bollinger band section before a breakout? And standard deviation measures risk which in turn indicates volatility. You can also use Ichimoku Clouds.

@kizee...When determining the volatility you have to also accept a particular time period that you are interested in. Now, BBs and Ichimokus help one avoid speculative areas of trading which in my opinion can be described as volatile. I will now add another tool, Average True Range which uses the differences between the high and low prices to get a value on volatility. With this tool you also have to have a time frame eg ATR (15) which means ATR of the previous 15 periods (whatever your period is minutes or years) although it is the norm to use 14 periods.

what do u understand by volatility sir?

its pretty much the std deviation of a fin instrument or the deviation from said instruments mean we cud get more pedantic and state that its the std dev of a the continous compounded returns of a fin instrument..te 4 different measures(of volatility) actual, actual future,historiccurrent or future implied..NONE I repeat NONE of these measures involves use of a TA oscillator

again...these tools use a std dev from a movin average so unless u beleive an MA can giv u the mean value of an instrument then i wudnt say that they measure volatility...as i said they detect and show a market is volatile or will be volatile without neccesarily giving absolute values of said volatility[/quote]

ATR DOES give an absolutre value on volatility sir.

So...@The Merchant and @Kizee.

Let me rephrase the question. What's the best way of measuring volatility in general?

Ding ding: Round two of the cock fight begins...

Nway thanks a lot the both of you. I have more than enough info.