Volatility Estimation

Hii..

I would like to know the correct method of arriving to trhe figure of Annual Volatility.

There has been a doubt in my mind hence a novice query,
The quote NSE is displaying (on get Quote Screen bottom) is/may be calculated on 365 days where as some other sites Ihave seen the annual Volatility has to be the measure of actual trading days in a year & hence they take a figure of 252 days as a Year.

Can some seniors through some light on this.

regards

Santosh

Nearing 50 Views & no single reply..

Is my query a foolish one or is it Really a Tough Quiz..??

regards

Santosh

(one)dont go in for annual voletilty
TWO--IT IS OF NO USE FOR SMALL INVESTERS
THREE-ATR IS THE BEST VOLETILTY INDICATOR FOR SMALL INVESTERS
FOUR--USE END OF DAY TIME FRAME
FIVE--CHOOSE ANY PERIOD OF YOUR CHOICE
SIX--STANDARD PERIOD WHICH ARE USED ARE
9--10--14--20--21--30--34(i have given choice for normal and fiobonacci both)
seven--use ema in place of simple moving average
eight--NOW THE ANSWER TO YOUR QUESTION WILL COME
--------AND THE ANSWER TO YOUR QUESTION IS--------
WHAT EVER TIME PERIOD YOU CHOOSE TO GAUGE THE VOLETILITY LEVAL
MAY BE 14- 20 OR 34 OF YOUR CHOICE
BUT YOUR SOFTWARE SHOULD CONSIDER PREECDING 200 DAYS FOR CALCULATION OF MOVING AVERAGE DATA
SO-SO-SO-SO-SO---200 HUNDERED DAYS IS THE STANDARD FOR CALCULATING VOLETILITY LEVAL !!!!!!!!

your query was not foolish but of course it was a tough quiz for small investers
you can clear any doubt
you are most welcome

When the market moves wildly like in the past week, when all technicals collapse, indicators freeze and fundamentals have no meaning all traders measure volatility with their gut.