# EWMA Volatility EWMA volatility (RiskMetrics): exponentially weighted variance of close-to-close returns, annualised in percent, reacting quickly to new shocks. ## How to read it - Higher values mean larger recent returns; lower values a calmer market. - Recent returns weigh most, so spikes show up immediately and fade gradually. - Useful for comparing current risk with recent history. ## Key settings - Lambda (decay) 0.94: higher = slower, smoother. - Annualise on; off = per bar, in percent. ## Good to know - Drawn in its own pane below the chart.