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I tried to find a method to recognize a sudden movement, e.g. climb, of a stock price. The method should realize that the price suddenly changes in value very fast, after having a long calm period. What would be a suitable method (indicator) to achieve that?

I tried to search online for that, but out of all explanations how different indicators work, I can not determine which one is the most suitable.

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  • $\begingroup$ Some variation of Moving Average comparison should do: for example Kaufman Adaptive Moving Average, or moving average with a variable band, etc, etc. $\endgroup$
    – nbbo2
    May 30, 2017 at 18:47

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Sounds like Volatility Bands may be what you need. From the link:

Volatility Bands are an indicator that allows users to compare volatility and relative price levels over a period time. The indicator consists of three bands designed to encompass the majority of a security's price action.

Volatility bands can help confirm trend, but they do not determine the future direction of a security.

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Bollinger Bandwidth would do the job. Bollinger Bandwidth is defined as the percentage difference of standard deviation bands of a moving average.

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