The Intraday Volatility Range Calculator is a powerful tool designed for traders and investors who seek to understand and predict the potential price movements of a financial asset within a single trading day. By analyzing yesterday’s price data, this calculator provides valuable insights into the expected volatility range for today.

Intraday Volatility Range Calculator

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How to Use INTRADAY VOLATILITY RANGE CALCULATOR

  1. Input Yesterday's OHLC Data: Enter the Open, High, Low, and Close prices of the financial asset from the previous trading day into the designated input fields.
  2. Specify Standard Deviation: Provide the standard deviation, which represents the measure of volatility or dispersion of prices around the mean.
  3. Click Calculate: Once all necessary information is entered, click the "Calculate" button to generate the volatility range.
  4. Interpret Results: The calculator will display a bell curve graph illustrating the probability distribution of prices within the specified range. Additionally, a table provides probability values (in percentage) corresponding to different price levels.

Benefits:

  1. Accurate Prediction: By analyzing yesterday's price data, traders can gain valuable insights into the potential price movements and volatility for the current trading day.
  2. Risk Management: Understanding the expected volatility range allows traders to make informed decisions regarding risk management strategies, such as setting stop-loss orders or adjusting position sizes.
  3. Improved Trading Strategies: Armed with knowledge of the volatility range, traders can tailor their trading strategies accordingly, optimizing entry and exit points for maximum profitability.

Calculations:

The calculator utilizes the concept of a normal distribution, commonly known as a bell curve, to model the probability distribution of prices. The mean, calculated as the average of yesterday's OHLC prices, represents the central tendency of the data. The standard deviation, provided by the user, quantifies the dispersion of prices around the mean.

Using these parameters, the calculator generates a bell curve graph, illustrating the probability of different price levels occurring within the specified range. Additionally, a table displays probability values as percentages, aiding traders in assessing the likelihood of price movements at various levels.