Charts showing the calm in volatility markets since implementation of the recent wave of global stimulus has been nothing short of incredible.
| Intraday volatility charts: (EUR, JPY, AUD, NZD, CAD) | ||||
| EUR/USD | EUR/JPY | Dow Jones | Nikkei 225 | Gold |
| USD/CHF | AUD/USD | S&P 500 | FTSE 100 | Brent Oil |
| USD/JPY | EUR/ZAR | Nasdaq 100 | ||
| GBP/USD | EUR/GBP | |||
Weekday (Monthly) Returns
The weekday (monthly) returns chart indicates the average daily (monthly) return of the market per weekday (month). A number of 0.30% on a Wednesday in the 1 year period indicates that the market gained 0.30% every Wednesday in average over the last year. The chart is plotted over period of 4 years.
This chart helps you to identify major continuities of very positive or negative weekdays. Some markets tend to be very positive (negative) on Fridays or Mondays.
The monthly returns chart indicates the same sort of patterns on a monthly basis. It helps to identify whether a market is usually very strong or weak in summer (winter).
Weekday (Monthly) Volatilities
The 1weekday (monthly) volatilities chart indicates the average volatility of the market per weekday (month). A number of 0.80% on a Wednesday in the 1 year period indicates that the market gained or lost 0.80% every Wednesday in average over the last year. The chart is plotted over a period of 4 years.
This chart helps you to identify high volatility days of the week. The reason for such a phenomenon could be the regular announcement of economy figures on certain days. Markets usually tend to be more volatile on Fridays and Mondays. A daily volatility of 1% corresponds to a yearly volatility of 16%, a daily volatility of 2% corresponds to a yearly volatility of 32% and so on. This feature is extremely helpful for option traders.
The monthly volatilities chart indicates the average volatility of the market per month. The numbers are annualized, therefore 20% counts for a yearly volatility of 20% (as used for option pricing). The chart helps to identify if a market tends to be more volatile in summer compared to spring and fall.
Source: http://www.chartware.at