Identification and application of volatility

Trader and author Raghee Horner of Interbank FX talks about different volatilities for different currencies.

What if you could actually know the likely price range for the pair you are trading, not only for the day, but for a specific hour? How would that affect, not only your entry timing, even the consideration for whether price could reach your entry target? How would that affect your profit target placement and your Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term? What if you knew when Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term typically increased or decreased throughout the 24 hour trading day?

Having such information, understanding the pip movement range, can be really helpful.

Indeed, it’s possible to break things down to an hourly pip range. You can dissect this one step further. You can take a look at the expected price ranges depending upon which timeframe, and you can see what the expected price ranges will be. It doesn’t mean price will reach these levels, but gives an indication of the range within which a given pair will trade.

For further insight into using volatility in your trading, visit:

https://www.ibfx.com/Corporate/post/2010/05/07/Using-PowerStats-to-Identify-Volatility.aspx ?ibfx=fm