When looking for good trade opportunities, then it is crucial to check on market volatility. Volatility helps to determine the price changes over a particular time.
One way you can use to check on the market volatility is the moving averages. Although this is a simple way to check on the volatility, it usually provides inaccurate data. Moving averages typically measures the par market movement for a specified period.
You can also use the Average True Indicator(ATR) to measure volatility. This method can be used to measure the difference between two given points, no matter the direction of these points.
Bollinger Bands is another indicator that can be used to measure volatility. These bands are generally two lines drawn one above and below in a moving average for a given amount of time.
These bands are vital, and they will involuntarily contract with low volatility and expand when there is high volatility.