Volatility is the measure of price fluctuation over time, whereby relative and not absolute price change is measured. Finally, historical volatility measures the deviation of a security from its standard price trend to determine i.e., if its rise was steady or fluctuated strongly.

Volatility also shows seasonal tendencies. Market experts use terms such as the "summer doldrums" to describe low volatility market phases. SeasonalCharts.com displays the seasonal course of volatility precisely by using absolute values unlike the prices of securities and indexes, whose changes are shown on a relative basis. Please note that for mathematical reasons the influence of single extreme events, unfortunately is relatively high.

Often volatility of the immediate past is all that is observed. The charts at SeasonalCharts.com are based on long time frames and so deliver information on long-term volatility.

Buyers, sellers and writers of options and warrants use historical volatility to forecast future volatility. This influences the fair price of an option or a warrant. Seasonal trends are useful for these types of forecasts.

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