What it does
Close-to-Close volatility is the classic historical volatility estimator: it computes logarithmic returns between consecutive closes, takes their standard deviation over a lookback window (around the mean return), and annualizes it, typically expressed as a percentage. It is the textbook realized-volatility number used in options pricing and risk models. Only closing prices matter; intrabar action is ignored.
How to add it
Click Indicators (ƒx) in the header.
Search “Volatility Close-to-Close” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use it as the baseline realized-volatility gauge: compare today's reading against the instrument's own history to classify quiet versus turbulent regimes.
- Options context: realized volatility persistently below implied favors option-selling strategies, above implied favors owning options.
- Low-percentile readings (volatility compression) often precede expansions; combine with breakout setups.
- Scale position size inversely with it to normalize portfolio risk across instruments.
- Watch for volatility spikes as event markers; they frequently cluster around capitulation lows.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Periods | number | 10 | 2–500 |
| Days Per Year | number | 252 | 1–366 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Vol C-C | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- Reference levels (where the study has them) are editable — tune them to the instrument you're trading.
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
Watch out for
- Ignoring highs, lows and gaps makes it the least efficient common estimator; it needs longer windows for stable readings.
- It is backward-looking and mean-reverting slowly, so it lags regime shifts and says nothing about direction.