Volatility is a very important parameter for a quant.
But I don't see many volatility based indicators being used by traders.
There are invisible levels on the charts where price takes a turn.
We cannot see those invisible levels but quants using their quantitative models can see them.
We as retail traders waste our time looking at trendlines and support/resistance lines.
Quants working at Wall Street laugh at these trendlines and S/R levels.
They have sophisticated quantitative models working for them.
These quantitative trading algorithms automatically tell where price is going to turn.
Most of these quantitative algorithms use volatility in their predictions.
I have written a blog post in which I develop a volatility based custom indicator that you can check.
Idea is simple when gets too far from the mean it is bound to revert.
This is a simple statistical concept that we can use in developing a good custom indicator.
