Volatility and Volume Indicators

Bollinger Bands, ATR, Keltner and Donchian channels, OBV, VWAP and MFI: measure volatility and participation to size positions and time entries.

Lessons

1. What Is Volatility?: How much price moves, and why it drives your stop and position size.
2. Bollinger Bands: A moving average with bands two standard deviations away.
3. Bandwidth and %B: Two derived tools: how wide the bands are and where price sits inside them.
4. Average True Range (ATR): The standard way to measure volatility and set stops.
5. Keltner Channels: EMA-based channels that use ATR for their width.
6. Donchian Channels and Breakout Systems: The highest high and lowest low over N periods, the basis of classic trend following.
7. Volume Basics: What volume shows and what it hides.
8. On-Balance Volume (OBV): A running total that adds volume on up days and subtracts on down days.
9. VWAP: Volume Weighted Average Price: The average price weighted by volume, a favourite intraday benchmark.
10. Money Flow Index (MFI): A volume-weighted version of the RSI.
11. Accumulation/Distribution and Chaikin Money Flow: Tools that judge where the close sits in the range, weighted by volume.
12. Position Sizing with ATR: Use volatility to keep risk equal across markets.
13. Combining Volatility and Volume Signals: Look for expansion with participation and avoid breakouts with no volume.