One of the most important things for a trader is to stay calm and not get carried away by runaway emotions. All this in order not to partially or completely lose the investments made. To assist traders in this task, volatility indicators have been created.
Volatility indicators are tools to analyze changes in market prices during a specific period of time. The faster prices change, the greater the volatility and, conversely, the slower, the lower the volatility. This can be measured and calculated on the basis of historical prices, as well as to identify trends. It also usually indicates whether a market is overbought or oversold., a situation that causes a price to be unreasonably high or low.
The possibilities of this tool help traders to identify the points where the price stops and potentially invests. They are typically used in combination with other signal generation conditions to supplement the information they offer. There are several volatility-based indicators that use such volatility in a smart way to help identify trading opportunities. Some examples of such indicators are the True Range Average (ATR), the very popular and easy to use Bollinger Bands (BB), Donchian channels and Keltner channels (KC).
Bit2Me DEX, an exchange with a whole suite of indicators at your fingertips
In our service Bit2Me DEX, you will have at hand a wide range of technical analysis indicators at your disposal. From the popular MACD, Bollinger, RSI and EMA, to the most specialized. All these indicators are at your disposal to facilitate the best decision-making during your trading session. And it is that with more than 80 different indicators, a real-time graph and a clear and simple interface, Bit2Me DEX it is your best trading option.