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.
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
| Component | Uses current bar? | Effect intrabar |
|---|---|---|
| Squared intraday returns | Yes, as they occur | Each adds ≥ 0 |
| Running sum | Yes | Only increases |
| Annualisation | No | Fixed 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.
Review Realized Volatility in Crypto with bar replay before using it live.
Open ChartsPod replayHow much it moves inside one bar
Rules
Compare with implied volatility in At-the-Money Implied Volatility in Crypto: How to Read the Data With Price Context.
Put Realized Volatility in Crypto next to price, flow and positioning in one workspace.
Open a ChartsPod workspaceQuestions 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.
- TradingView Pine Script: Repainting — live vs historical calculation.
- 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.