Relative Volume Historical Volatility MCM

Relative Volume Historical Volatility

Volume Historical Volatility is relative to it's doubled lookback period of the volume historical volatility to calculate relative volume historical volatility .

Including a standard deviation to calculate the volume volatility value itself is useless. It filters out 32% of the most volatile volume movements of the asset that you are observing.

Example of RVHV:

Period of Volume Volatility Value (POVVV) : 10

Relative Volume Historical Volatility : POVVV / POVVV*2

Historical Volume Volatility of past 10 Bars is compared to the historical volatility of the bast 20 bars to show real growth/decrease of volatility relative to the time of the performing asset.

Comparing historical volume volatility to the current bar includes much more noise, the relative volume historical volatility can be perceived as a smoothed historical volatility ind.

Marginal notes:

Added standard deviations adjusted to the relative volume volatility value to predict probable future volatility of the stock.