EUR/USD - Volatility dropping over time... | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

When has EUR/USD high volatility? 9 replies

time is set to GMT+0 time zone, what is my time adjustment? 0 replies

Easiest way to hedge with silver/gold against EUR dropping? 0 replies

Why the low volatility of EUR/USD in 2007? 9 replies

Dear Full time/Part time Traders – Thanks for your time and help 7 replies

Attachments: EUR/USD - Volatility dropping over time...
Exit Attachments

EUR/USD - Volatility dropping over time...

  • #1
  • First Post: Nov 30, 2006 11:02am Nov 30, 2006 11:02am
Despite our recent run on the Eur/Usd, I have been tracking the average range of the euro on a 4 hour period. I have noticed that the volatility/range has been steadily reducing since last year, exception to the rule was a spike around June 1 of this year. This range (the difference between the high and low) is averaged over 100 periods backwards from the date of the calculation.

You can see what I mean on the attached chart I made in Excel.

My question is, how do you interpret this reduced volatility and what do you feel its impact on the market is?

GirlFlyer
Attached Image
  • #2
  • Nov 30, 2006 11:20am Nov 30, 2006 11:20am
Quoting GirlFlyer
Despite our recent run on the Eur/Usd, I have been tracking the average range of the euro on a 4 hour period. I have noticed that the volatility/range has been steadily reducing since last year, exception to the rule was a spike around June 1 of this year. This range (the difference between the high and low) is averaged over 100 periods backwards from the date of the calculation.

You can see what I mean on the attached chart I made in Excel.

My question is, how do you interpret this reduced volatility and what do you feel its impact on the market is?

GirlFlyer
nice posted GirlFlyer...keep posting
  • #3
  • Nov 30, 2006 3:22pm Nov 30, 2006 3:22pm
Quoting GirlFlyer
Despite our recent run on the Eur/Usd, I have been tracking the average range of the euro on a 4 hour period. I have noticed that the volatility/range has been steadily reducing since last year, exception to the rule was a spike around June 1 of this year. This range (the difference between the high and low) is averaged over 100 periods backwards from the date of the calculation.

You can see what I mean on the attached chart I made in Excel.

My question is, how do you interpret this reduced volatility and what do you feel its impact on the market is?

GirlFlyer
What's really funny is that I am looking at that chart and seeing levels and patterns and they are still applicable. You can mark countertrend channels, retracements, etc. Weeeeird.
  • #4
  • Last Post: Nov 30, 2006 4:37pm Nov 30, 2006 4:37pm
Quoting Far From Average
What's really funny is that I am looking at that chart and seeing levels and patterns and they are still applicable. You can mark countertrend channels, retracements, etc. Weeeeird.
Yep! For the same reason you can play trendline breaks etc off of indicators such as CCI, RSI and others.

As price causes people to react, the underlying momentum,strength and so on, reacts at the same time. Though different enough to be usefull as a confirmation.

Want to get confused with even MORE trading methods?? LOL

GirlFlyer,

Someone posted a link to an article on DailyFX about the current low volatility and similar situations in history. Don't know which thread or who, but here is my bookmark. Good article.

How Long Will Low Volatilities in FX Markets Last?

,Bundy
Bundy's status today: "Waiting..."
0 traders viewing now