AiM.RealVol (2 lines)

Key Features

1. Calculates realized volatility using the official S&P Dow Jones methodology
2. Uses customizable time windows (default 21 and 63 days) for short-term and long-term volatility
3. Expresses volatility as an annualized percentage for easy interpretation
4. Plots both short-term and long-term realized volatility for comparison

How to Apply

1. Open a daily chart for your desired ticker symbol in TradeStation.
2. From the EasyLanguage shortcut bar, select "Indicators" and choose AiM.RealVol 2 Lines.
3. Apply the study to your chart.

Note: This study is designed for daily charts to calculate meaningful realized volatility.

Inputs to Adjust

1. ShortWindow (default: 21): The number of days for short-term volatility calculation.
2. LongWindow (default: 63): The number of days for long-term volatility calculation.

Adjust these inputs based on your preferred short-term and long-term volatility measurement periods.

Interpreting the Results

1. The study plots two lines: RealVol 1 (short-term) and RealVol 2 (long-term).
2. Values are expressed as annualized percentages, consistent with industry standards.
3. Higher values indicate higher volatility (more price fluctuation) in the respective time period.
4. When short-term volatility exceeds long-term volatility, it may indicate increased market turbulence.
5. Conversely, when short-term volatility drops below long-term volatility, it might suggest a calming market.
6. Volatility trends and crossovers between the two lines can signal potential changes in market conditions.

Additional Information

1. The volatility calculation strictly follows the S&P Dow Jones Realized Volatility Indices Methodology.
2. Results are directly comparable with published S&P Dow Jones Realized Volatility Indices.
3. The study uses logarithmic returns, which is the standard approach in financial volatility calculations.
4. Be aware that realized volatility is backward-looking and may not predict future volatility.
5. Consider using this indicator in conjunction with other technical and fundamental analysis tools.

Note: This study is designed for educational and informational purposes only. It should not be considered financial advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.