What do you think of when you hear the term “volatility”? Most people think of risk, wild price changes, fear, uncertainty, etc. Volatility can be all of those things but, just so we’re on the same page, let’s think about volatility in terms of price change. Specifically, volatility refers to the magnitude of price in either the past or the future. Historical volatility, also known as "realized" volatility, refers to past performance. Implied volatility estimates future performance.
It is important to note that neither historical nor implied volatility indicate price direction. You CANNOT use them to accurately determine if prices will rise or fall. Volatility is simply an indicator of magnitude, nothing more.