Average Volatility Oscillator from High–Low Ranges

Summary

This brief note defines an Average Volatility (AV) oscillator. It first measures each bar’s volatility as the difference between its high and low, then applies a simple moving average over a user-selected period. The period is the only input described, so the note gives the basic calculation but no entry, exit, or position-sizing rules.

The document provides no chart examples, market tests, performance results, or guidance on interpreting oscillator values. It does not explain how the indicator might be combined with other signals or adapted across assets and timeframes. Readers can learn the construction of this range-based smoothing measure, but should not infer that it forecasts direction or provides a standalone trading strategy.

Key ideas

• The indicator defines bar volatility as the high price minus the low price.
• It smooths that range measure with a simple moving average.
• The user specifies the averaging period as the sole input.
• The note gives no trading rules or evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.