# Volatility

Volatility is measured via a *hybrid standard deviation logic*.\
First, the standard deviation of closing prices over 10 bars is scaled by a factor, then normalized against its own 20-bar rolling standard deviation. The result is converted into a 0–100 index, producing three regimes:

<div data-with-frame="true"><figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2F8XETaODBfdkv2oLlEvF1%2Fimage.png?alt=media&#x26;token=300b5a8f-ef32-4c9c-8822-11efff38c67e" alt=""><figcaption></figcaption></figure></div>

{% tabs %}
{% tab title="❄️ Calm (<50)" %}

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FZKa71agzGzf0OeEOrwq1%2Fimage.png?alt=media&#x26;token=590c3d0e-f8c5-436f-9426-2e775a68b347" alt=""><figcaption></figcaption></figure>

❄️ Calm (<50): low dispersion, mean-reversion conditions dominate.
{% endtab %}

{% tab title="⚠️ Elevated (50–70)" %}

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FId4Iw7vCOmIN7d2TnxVq%2Fimage.png?alt=media&#x26;token=89d1b926-6189-4992-8008-74377d5e42f8" alt=""><figcaption></figcaption></figure>

⚠️ Elevated (50–70): directional expansion likely, watch for breakout tension
{% endtab %}

{% tab title="💥Explosive (>70)" %}

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2Fgo6REM6OhsfckTMLF2l0%2Fimage.png?alt=media&#x26;token=361979c4-97f4-47c6-abd8-600c8699ba2d" alt=""><figcaption></figcaption></figure>

💥 Explosive (>70): strong dispersion, trend-following setups favored.
{% endtab %}
{% endtabs %}

• Uses layered smoothing to dampen noise.
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• Normalization ensures comparability across different assets.
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• Acts as a meta-filter for selecting strategy type (range vs. momentum).