Historical Volatility is used by investors to find financial instruments that have had large price moves over some period of time. Many investors believe that financial instruments that have had large price moves will continue to move, while financial instruments with no price movement will continue to lie dormant. Many investors will also see if the short term historical volatility is greater than the longer term historical volatility, to see if a financial instrument was dormant and has suddenly come to life. It should be noted that historical volatility just shows that price activity has increased. It does not tell you in which direction prices have changed. Investigator lets you test these theories.
First, select the time period and enter the number of bars ago value that you want to use for testing.
You now have three choices which you can choose to use individually or combined.
The first option allows you to compare two historical volatility values to see if one is greater or less than the other. You must have value entered in both the Num Bars 1 and Num Bars 2 edit boxes if you choose this option.
The second option allows you to see if a historical volatility is greater or less than a certain value. You must have value entered in both the Num Bars 1 edit box if you choose this option.
The third option allows you to see if a second historical volatility is greater or less than a certain value. You must have value entered in both the Num Bars 2 edit box if you choose this option.