If you are day trader or an option writer, you definitely know how well these volatilities co-relate with option premiums. The higher the volatility, the market sees fear, the lower the volatility the market sees greed. Each of these sentiments run the market on a psychological level. This tool factors in the volatility on a broader perspective there by diagnosing a potential move.
Everyone knows the role of volatility in our day-trading and how it plays a major role in price movements. This tool helps assess the next potential move.