Just by looking at GBPJPY, you can see that as the price moved up several thousand pips over the past year, the ATR is larger.
So I noticed that EURUSD is acting differently at its alltime highs too...
This makes me wonder if the actual price level (say EURUSD 1.40 - 1.50) is almost a predictor for a change in market conditions (ATR)
It's very apparent that as GBPJPY ranged over the previous years (04-06) that the ATR was much smaller....
Can we assume that as GBPJPY returns back down to, say 200.00, that systems like Nicotina High Low 8 Hour would stop working? But if it continues at its current ranges (@220.00) that the ATR will remain high, continuing to give the much needed volatilty for a system like that to work.
Just a thought.
So I noticed that EURUSD is acting differently at its alltime highs too...
This makes me wonder if the actual price level (say EURUSD 1.40 - 1.50) is almost a predictor for a change in market conditions (ATR)
It's very apparent that as GBPJPY ranged over the previous years (04-06) that the ATR was much smaller....
Can we assume that as GBPJPY returns back down to, say 200.00, that systems like Nicotina High Low 8 Hour would stop working? But if it continues at its current ranges (@220.00) that the ATR will remain high, continuing to give the much needed volatilty for a system like that to work.
Just a thought.