Donchian Channels is a technical analysis trading strategy developed by Richard Donchian. Indicator uses candlestick charts to show price movements over time. Channel consists of upper, lower bands and average middle line
Forex market trades $5.3 trillion daily, most liquid financial market. No central physical exchange, banks act as market makers. Trading hours are 24 hours from Sunday evening to Friday night
VIX measures market's expectations for S&P 500 volatility over 30 days. Created by CBOE Options Exchange and maintained by CBOE Global Markets. Calculated using SPX options with expirations between 23-37 days. Values available 3am-9:15am EST and 9:30am-4:15pm EST
Volatility measures stock price variation over one year. Standard deviation is the most common measure of volatility. Normal distribution shows 68% within one standard deviation
Volatility measures security returns' dispersion around mean. Calculated as standard deviation multiplied by square root of time periods. Higher volatility indicates riskier security prices
Created in 1973 by Fischer Black, Robert Merton, and Myron Scholes. First widely used method for calculating option contract values. Scholes and Merton won Nobel Prize in 1997 for this work