Historical Volatility

Annualized 20-day volatility — equity volatility.

What is HV?

Historical Volatility measures the annualized standard deviation of log returns over 20 trading days. It quantifies how much price has varied historically.

Parameters

  • 20 days: Lookback period
  • 252 days: Annualization factor

Interpretation

  • High (>30%): Highly volatile, risky
  • Medium (15-30%): Typical stock volatility
  • Low (<15%): Calm, stable price action

Price Overlay

  • Enter Closer-Look mode to see close price overlay
  • Toggle: Show/hide close price line (right axis)
  • HV spike + price drop = panic selling

Trading Signals

  • Rising HV = increasing uncertainty
  • Falling HV = calming markets
  • Compare HV to implied volatility

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