Traders rely on a variety of different indicators to track volatility and to determine optimal exit or entry points for trades. While high or low volatility in the market may scare some traders, it can be a payoff point for some risk-taking traders. Historical Volatility allows you to positively evaluate this volatility in the market.
Historical Volatility bands that are constructed using:
Average as the middle line.
Upper and lower bands using the Historical Volatility high/low (instead of “regular” Historical Volatility) for bands calculation.