Volatility: ATR, Bollinger Bands, and Fibonacci

We've now covered direction (trend lines), shape (chart patterns), speed (momentum), and smoothing (moving averages). This lecture covers a different dimension entirely: volatility is not which way price is moving or how fast, but simply how much it's moving, in either direction. This matters more than beginners usually expect, because volatility is one of the main inputs into deciding how big a position to take and where to place a stop-loss - topics we'll get to directly in a later lecture, but which depend on the tools introduced here.

Average True Range (ATR)