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  • #16
    Most Volatile Currency Pairs of 2019



    Want to start Forex Trading but don’t know which forex pairs you need to focus for profit? Nobody can give this answer correctly as it depends upon the trader’s knowledge about that currency pair and the volatility of currency pairs. You need to take the time to analyze different pairs against your own strategy, to determine which are the best Forex pairs to trade on your own account.

    What Volatility Refers to?
    Volatility is a term used to indicate the change in trading price of pairs in a specific period of time. Greater the scope of price variation, greater volatility is considered to be there. The volatility of a pair is measured by calculating the standard movement away of its returns. The standard difference is a measure of how widely values are dispersed from the average value (the mean).

    The importance of volatility for traders
    Being aware of a trading product's volatility is important for every trader, as different levels of volatility are better suited to certain tricks and psychologies. For example, a Forex trader looking to progressively develop his funds without taking on a lot of risk would be advised to choose a currency pair with lower volatility. On the other hand, a risk-seeking trader would look for a currency pair with higher volatility in order to cash in on the superior price differentials that volatile pair offers.

    What affects the volatility of currency pairs?
    Currency pairs are affected by following factors or events:
    • Economic or Market Related Events
    • Change in Interest Rate of a Country
    • Drop in Commodity Prices
    The degree of volatility is generated by different aspects of the paired currencies and their economies. Moreover drivers of volatility include inflation, government debt, and current account deficits; the political and economic stability of the country whose currency is in play will also influence FX volatility. As well, currencies not regulated by a central bank - such as Bitcoin and other cryptocurrencies - will be more volatile since they are inherently speculative.
    According to the chart we come to the point that GBP/NZD is the most volatile currency pair of 2019.

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    • #17
      Forex Indicators

      Forex Indicators also known as Expert Advisors (EAs) are tools used by traders on the trading platform to help them make better trading decisions, by using certain methods and strategies which predict the future movements of prices. Most Forex platforms allow the use of EAs although in some few cases they may not be allowed, so it is always preferable to check.
      These tools can be found on the platform and traders can choose which are the best to use for each trade. Some traders prefer one tool over the other, some like combining several methods. There are many Forex Indicators and EAs, here are two of the most popular ones;

      The Profit Taking Tool
      As the name suggests it advices the trader when is the right time to take the profits and close the trade. While many traders can go into good trades deciding when is the right to pull out is a little more tricky. Pulling out too soon may prevent you from making further profits and pulling out too late may cost you your profits. In this case the three day relative index can also be used to help the trader determine what the likely odds are. Another method is the known Bollinger Bands, which adds and subtracts the standard deviation of price data changes over a period from the average closing price over that same time frame to create trading ‘bands’.
      Another method is the trailing stop, which gives the potential of the trade to let profits run without staying open too late and losing money.

      Trend Confirmation Tool
      The trend confirmation tool is usually used as a backup for the trend following tool. It helps reassure whether the current trend following indicator is correct or not. It gives its own results and if both Trend following and trend confirmation tool results match then the trader can be reassured.
      Overall Forex Indicators, Expert Advisors and trade assisting tools are many, and they can each be used in many different ways, through many different method, for many different reasons, which is why it is advised to further explore Forex indicators, they can and will make your trades easier and more successful eventually helping you become a better trader.

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