The indicator is a volatillity measure.
It implements the equation of the standard deviation of the last N bars. The formula of the equation can be found at https://en.wikipedia.org/?title=Standard_deviation
- Bars Used for the Indicator Calculations - the number of bars used to calculate volatility. Proper values - from 5 to 250.
- Ability to shift the chart - Ability to shift the chart to the left. Proper values- from 0 to 20. Default value is 0 and corresponds to no shift
The present indicator is not the market's perception of future volatility. Market's perceprion of future volatility can be approached by the premium of put and call option of same maturity and same strike price. The reasoning behind the approach is that option's premiums increase as perception of future volatility increases.
The present indicator is the actual volatility of the last N bars.