Volatility is the extent to which prices fluctuate. Higher volatility represents greater opportunity for trading profits, due to a wider range of movement in prices. Lower volatility represents limited price movement and therefore fewer opportunities to profit from price swings.
High volatility is generally associated with less liquidity or low volume.
For further discussion on option-related volatility, please visit the implied volatility page or IV rank page.
Return to the main chart patterns page to learn more trading terms.
