CAT Volatility: Why a Reading Above 100 Isn’t a Return
Summary
Hollow Point Trading shares a historical Caterpillar IEX replay using completed five-minute bars from October 8, 2026. It explains how Chaikin volatility is calculated from high-low spreads smoothed with a 10-period exponential average, and why a reading above 100 is not a stock return.
https://youtu.be/EC68Cq_sz5Q
CAT: a volatility reading above one hundred is not a stock return #...
A volatility reading above one hundred does not mean the stock doubled. This historical Caterpillar IEX replay uses completed five minute bars from October eighth, twenty twenty six. For this Chaikin volatility example, calculate each high minus low spread. Smooth those spreads with a ten period exponential average, seeded with the first observe...
