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Historical volatility is defined by Sheldon Natenberg, as the standard deviation of the logarithmic price changes measured at regular intervals of time. In Mr. Natenberg's book, Option Volatility & Pricing, he covers volatility in detail and gives the formula for computing historical volatility. In MetaStockTM the equivalent formula would be:
Std( Log( C / Ref( C ,-1 ) ) ,10 ) * Sqrt( 365 / 7 )
This assumes Weekly Data. To utilize this with Daily Data, the formula would be:
Std( Log( C / Ref( C,-1) ),10 ) * Sqrt( 365 )
For further interpretation refer to the book Option Volatility & Pricing, by Sheldon Natenberg.
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