Volatility Swings

These swings highlight changes in trend based on a price move that exceeds the minimum amount of Average True Range (ATR), eg a 1 ATR Volatility Swing would change trend direction each time the security retraced by 1 ATR. ATRs are a standard way of measuring volatility and by using this method, we have swings thresholds that are calculated on a per security basis and even adapt to new volatility in the security. For instance, in times of high volatility, a move up will require a greater retracement to signal a change in trend.

This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/optuma-extreme-tools/volatility-swings