Volatility

High volatility means that the price of an asset is subject to large and rapid swings, while low volatility means that the price is relatively stable and consistent over time. Volatility can be caused by a variety of factors, including changes in supply and demand, economic indicators, news events, and market sentiment. Volatility is typically measured using statistical indicators such as standard deviation or the average true range. These indicators provide traders with a sense of the potential price movement of an asset, allowing them to make informed decisions about their trading strategies.