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Joined May 2009
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Status: Dead or Alive 300 000 000 Berrys
|192 Posts
Realizing my mistake on my previous volatility study of the Euro FX, I decided to post my updated one.
The main difference is that I choose to study it on a logarithmic basis which is a lot more representative for daily timeframe.
The importance of knowing the volatility of the instrument you trade does not need proof anymore. This tool is unvaluable in price prediction. It can help to determine price target for the next trading day, evaluating risk to reward, and much more ...
What is important to note here is that most trading days fall into the 0.5% to 1.2% range, and that 0.8% range has the most occurence.