The Library

Concept family

Volatility

ATR, bands and squeezes, volatility estimators, and regime compression.

Volatility indicators measure how much price moves while setting direction aside. That one number carries a lot of weight: it sizes stops and positions, normalizes signals across markets and timeframes, draws adaptive bands around price, and flags when a quiet market may be winding up for a move.

The family divides along practical lines. ATR and its offshoots turn range into a workable unit of risk. Band and channel systems put volatility on the chart itself. Statistical estimators compute it more rigorously from open, high, low, and close data. Regime tools classify whether conditions are compressing or expanding, resting on the well-documented tendency of volatility to run in alternating quiet and active phases, though compression says nothing about which way the eventual break will go.

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ATR family

Average True Range and its direct extensions, from ATR bands to ATR-based stop distances, all resting on a range calculation that counts gaps as part of a bar's travel.

Band & channel systems

Bands and channels drawn around price, from standard-deviation Bollinger Bands to ATR-based Keltner Channels and high-low Donchian Channels, that make expansion, contraction, and squeeze setups visible at a glance.

Volatility estimators

Statistical measures of how much price actually varied, from simple close-to-close returns to formulas like Parkinson, Garman-Klass, and Yang-Zhang that draw extra information from the high-low range or the full open-high-low-close bar.

Regime & compression

Classification tools such as the Choppiness Index and narrow-range patterns that judge whether a market is coiling or already moving, since traders treat tight compression as the setup for eventual expansion.