Schwager Volatility Ratio

The Schwager Volatility Ratio, developed by Jack Schwager, is used to identify days with high price fluctuation amplitude.

Generally, the time period used is 14 sessions.

Days with large price fluctuations are indicated by a "Volatility Ratio" greater than 2.0.

Example

Interpretation

Days with high price fluctuation amplitude often precede a major trend reversal.