Volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices. Volatility is normally expressed in annualized terms, and it may either be an absolute number (Rs. 5) or a fraction of the mean (5%). This Volatility Calculator uses volatility to create a intraday trading system and generate buy sell levels. Mobile users may need to scroll horizontally to see the full Volatility Calculator below.

How to use this volatility calculator?
1. To use this calculator you need the previous day closing price and current day’s prices.
Apart from this you also need the volatility value for any stock. You get this value from www.nseindia.com   pictorial guide here
This calculator can be used at anytime after one hour (10:00 am) during the day. Ideal time is 10:00 – 11:30 am

2. Now let us see how to use this calculator. Lets say we want to find the values for Nifty Futures for today (08/04/2010) at 10.00 am.

3. I will first see the close price of Nifty Futures for previous day. (Close price is 5381)

4. To Find the volatility, I open the Get Quote for Nifty Future on www.nseindia.com. At the bottom, i see the volatilty at 0.86

5. After entering the Closing Price, volatility as seen in www.nseindia.com, I will enter current days high (5370), low (4348) and last traded price (5355.15).

6. I calculate the levels using the button.

7. I get the message as:
Sell at / below 5359 for following Target and stoploss
Target 1 : 5346.86 Target 2 : 5335.29 Target 3 : 5323.72 Target 4 : 5300.58 Target 5 : 5289.01

Stoploss : 5370

8. The Nifty Futures crashed to 5290.10. Target 1, Target 2, Target 3 and Target 4 were achieved.
Note: The above calculations are just an indication / suggestion based on volatility. You may include other indicators as well to confirm the prices.

How this Volatility Calculator works?