I've been looking at ways to assess whether a stock price movement is large or small using indicators like Bollinger bands, keltner channels, etc. I like BBs because the band widths adjust based on realized volatility but I was thinking it may be informative to use option IV as a more accurate gauge of the market's vol forecast for a stock. Is there a way to display the MA plus/minus standard deviations based on IV using a platform like TOS?
Also a side question: are there band-based indicators that use assumptions other than a normal distribution of price movements? for example a lognormal distribution?
Submitted October 15, 2020 at 11:40AM by ThenIJizzedInMyPants