Today’s implied volatility level

Below is a list of daily ranges of implied volatility for various assets.

These levels are based on one-month implied volatility and can be used as dynamic market-based support and resistance levels.

Implied volatility tells us that if prices are normally distributed, they will be approximately:

• The probability that future price changes will be within 1 standard deviation of the mean is 68.2%.
• 95.4% of the time it falls within 2 standard deviations.
• And 99.6% of the time it’s within 3 standard deviations.

However, please note that these probabilities are based on normal distribution assumptions and will not always occur.

However, it provides a clear indication of what the market expects in terms of price movements.

Implied volatility is an annualized number, but it can be converted to a daily range as shown below.

While these levels are very useful on their own, they can be combined with technical analysis tools such as pivot points, fibs, or psychological levels to more reliably identify potential entry, take profit, or stop loss levels. Masu.

What is unique about the use of implied volatility is that it provides a completely objective, data-driven price range that complements subjective technical analysis.