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INDICATORS · REALIZED VOLATILITY

Realized Volatility in Crypto: Why the Value Changes Before Candle Close

Realized volatility sums squared intraday returns over a period. Until the period ends, it's a running total that can only grow.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Realized volatility (RV) for a day is often √(Σ squared intraday returns), annualised. Unlike a rolling standard deviation, it accumulates within the period: each new intraday return adds a non-negative term, so the live day's RV only rises until the day closes. Comparing an incomplete day's RV with full previous days understates it early in the day. Compare complete periods, or scale the partial value explicitly.

Which part of Realized Volatility uses the live bar

ComponentUses current bar?Effect intrabar
Squared intraday returnsYes, as they occurEach adds ≥ 0
Running sumYesOnly increases
AnnualisationNoFixed factor

At 06:00 UTC a day's RV reflects six hours of returns; comparing it with yesterday's full-day RV makes today look calm.

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How much it moves inside one bar

Realized Volatility during one bar (illustrative)Realized Volatility during one bar (illustrative): 06:00: RV (partial) 22%; 12:00: 34%; 18:00: 41%; 24:00: 45% final.06:00RV (partial) 22%12:0034%18:0041%24:0045% final
Only Realized Volatility's closing value is kept in history. Original ChartsPod editorial graphic.
Illustrative intrabar range of Realized Volatility vs its closed valueIllustrative intrabar range of Realized Volatility vs its closed value: RV at 06:00 (partial) 22 ; RV at day end 45 .ILLUSTRATIVE INTRABAR RANGE OF REALIZED VOLATILITY VS ITS CLOSED VALUERV at 06:00 (partial)22RV at day end45
How far Realized Volatility travels inside a bar versus between bars. Original ChartsPod editorial graphic.

Rules

Realized Volatility signal hygieneRealized Volatility signal hygiene: Signals on closed bars; Bar-close alerts; Backtest uses the same rule; Live value labelled provisional; Settings identical across chart and alerts.REALIZED VOLATILITY SIGNAL HYGIENESignals on closed barsBar-close alertsBacktest uses the same ruleLive value labelled provisionalSettings identical across chart and alerts
Closed values are what history shows. Original ChartsPod editorial graphic.

Compare with implied volatility in At-the-Money Implied Volatility in Crypto: How to Read the Data With Price Context.

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Questions readers ask

What is realized volatility?

Volatility computed from intraday returns over a period.

Why does it only increase intraday?

Each new squared return adds to the sum.

How do I compare partial days?

Scale explicitly or wait for the close.

Sources and methodology

Indicator formulas are standard definitions; live-versus-closed behaviour follows TradingView's repainting documentation. Values in examples are illustrative.

  1. TradingView Pine Script: Repainting — live vs historical calculation.
  2. ChartsPod indicator reference — indicator calculations.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.