Using volatilities

HI,
I was reading 'day trading the currency market' book which I read about using volatilities and It makes me question .Does anybody uses from the information the volatilities gives us ?If so ,Where do you find them and how do you use them?

Thanks

Can somebody helps me please?

I cant understand your question?

If you are referring to volatility as it relates to the VIX (volatility index) and or volatility and options pricing, I can not help.

Another way of measuring volatility involves things like Average True Range (ATR), Narrow Range 7 (NR7), Narrow Range 4 (NR4), Wide Range 7 (WR7) and Wide Range 4 (WR4). You can Google any of the terms to find out information about them.

I would submit, however, that the best way to improve your trading thru the use of volatility analysis is via Wide Range Body (WRB) analysis. There is free information on the web about WRB analysis also, so please don't think I am trying to "sell" you anything.

As for how I use volatility information gleamed via WRB analysis, it's about understanding the price action prior to any trade signal. For me, a valid trade signal is only taken when the signal occurs within a Supply/Demand Delta Zone (via a WRB), because I only want to take trades within the range of a key price interval that has been identified as a change in the Supply/Demand Dynamic which more often than not represents a price area where there was a volatility spike.

See the chart below.

This trade is only taken because some portion of the price action that comprises the pattern is within the Supply/Demand Delta Zone.

Implied volatility can be extracted from option prices.

Here's a sample of volatility (vol) based prediction: http://www.olsenscale.com/view/eur/d...0-05-05-13-00/

The site seems to be down at the moment. Try later.

http://www.tradeguider.com/customer/...x1.aspx?Submit

You should also follow this thread:
http://www.forexfactory.com/showthread.php?t=157629

This Guys are good

Woosh!

Yeah anyway, IV data - when it's going up, the trend is strengthening (or going to start strengthening), and when it's going down, it's heading for a range. So says the theory at any rate. You can pick it up on IFR as part of their fx news package for $250/month - not sure where else.

How useful? Well, I found a few academic studies and they were at best inconclusive as to the how predictive IV figures are. These studies were far more exhaustive than I could manage so I left it at that. Treat with caution though - I once saw a study 'disproving' support and resistance; obviously not a trader then...