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Perceiving Forex Volatility through Descriptive Statistics − Part 1
Tue, Sep 2 2008, 12:54 GMT
by Mark Whistler
Forex markets often display significant volatility catching many traders by surprise. However, with a simple understanding of descriptive statistics and moving averages, many could soon find themselves ahead of the curve.
Many traders – both new and experienced – often find themselves at a loss attempting to understand why Forex markets tend to experience extended volatility. In simple terms, the reasoning behind extended volatility is that of continued buying, or selling beyond easily observable technical points found in charting. While the aforementioned explanation is almost infuriating simple, it is also true at the same time. Because technicals can sometimes lie, many traders often find themselves stopped out at high and low prints, leaving frustration and exasperation in the wake.
The question is then, how can traders transcend both technicals and volatility to achieve greater insight and perception into jagged movements within Forex. In other words, “How can we perceive volatility before it occurs?” Over the following pages, I will attempt to explain how using moving averages and descriptive statistics can help to identify trending and reversals, while also foreseeing volatility within almost any charting timeframe.
Published on Thu, Feb 5 2009, 11:49 GMT
Archive
- Perceiving Forex Volatility via Descriptive Statistics… Deriving Trending and Reversals - Part 2
Published On Thu, Feb 5 2009, 11:45 GMT - Perceiving Forex Volatility through Descriptive Statistics - Part 1
Published On Thu, Feb 5 2009, 11:35 GMT
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