Volatility analysis in tactical stock trading by Peter Eliason
Every stock, average and index has its own characteristic volatility range that holds the signals of impending price change. The challenge in technical analysis is to recognize and decipher these signals to determine which stocks, at what times, promise the most profitable trades.
Generally, stocks with less than 10% weekly volatility hold little risk. When weekly volatilities exceed 10%, a price change may be imminent. Trading volatility requires a familiarity with the volatility characteristics of individual stocks, averages and indices.