Urgent help need.how to calculate nifty volatility

desifxtrader

Well-Known Member
#2
True range is the largest of these three prices:

* The absolute difference of Today's High Today's Low
* The absolute difference of Today's High Yesterday's Close
* The absolute difference of Yesterday's Close Today's Low

Average true range is when you take an average of the TR values over a certain period. Wilder was inclined to use a 14 period average, but his method for averaging is somewhat different from normal averaging methods.

To arrive at the first ATR value in a series, Wilder calculated the TR values for the previous 14 days. The first TR value is simply that day's high minus that day's low. Once the initial ATR is found, subsequent ATR values are calculated using:



Also, refer:


http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_true_range_a

If you're using a charting software, you need to look for an indicator called "ATR".

cheers
 

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