Just 1 Question,Please "D

Hi,

After reading various book,there's still 1 thing that i can't get it. Maybe I stupid,but it keep ringing in my head.So can anyone tell me how to calculate volatility and how to make advantage of it. Previously, i trading using only MACD and lookfor previous low/high.

Thanks for u kindness to share.

As far as I know there's no volatility measure in forex because we have all these different brokers serving customers; not a central point where all the orders flow to.

Surely you could use standard deviation over a longer period of time. ie. bollinger bands use 20 periods, consider using 100 or 200. Do this either in the form of bollinger bands or use an indicator that shows you the SD directly (or program one yourself).

vix index is a mesure as well i dont use it myself


revoke

to put it simply, volatility is the amplitude of the price swings a market has made over a given period of time...a pick up in volatiltiy gives traders more profit potential...

to put it the easy way...if, for example, the high-low range on the WEEKLY timeframe/charting interval is increasing, the volatility on the DAILY timeframe is going up

another principle is: periods of range contraction alter with periods of range expansion...this is a cyclical thing and there are ways to exploit this

hmm..ok thank all for your reply,maybe i'll start testing another method like bollinger band or else, and for peter thanks that cyclical thing give me some inspiration.

Warm regard all

Also Average Range is another gauge. Since there are very few gaps there isn't really a need for Average True Range.