Need explanation about volatility - Page 2
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Thread: Need explanation about volatility

  1. #11
    Quote Originally Posted by ;
    Thanks, but I was speaking about violency. And I want to trade volatile moments.
    Can you really mean momentum?
    http://www.investopedia.com/terms/m/momentum.asp

  2. #12
    axronaxd
    Guest
    Use Bollinger band and volumes to measure volatility.

  3. #13
    SaToSwz
    Guest
    How much does volatily of this market affects the slippage when you trace and replie the transactions from other traders?

  4. #14
    Quote Originally Posted by ;
    How much does volatily of this market impacts the slippage when you trace and replie the transactions from other traders?
    Depends on sl's and tp's... Volatility is that the space price moves in a given time period compared to it's historic range of price movement, more motion in less time = high volatility and visa versa.

    Therefore the price you see will proceed often and move larger distances (and may gap) as volatility is high, the impliion here is that you have a higher prospect of getting slipped or a requote during those periods as your order tries to get matched/filled to prices that no longer exist.

    If you're on a forum copying scalp transactions using sl's and tp's in single digit pips, it will take perhaps 5seconds to post the transaction if he is quickly, then a couple seconds for you to be alerted of it and then another few seconds for one to enter the transaction on your platform. Within this time if volatility is high, price will probably have moved on from the entry point close to sl or tp eg; input ant price x sl 5pips tp10pips, lose 3 pips in the time it takes to enter trade onto your side, the trade is no very attractive anymore.

    If you're copying trades that have larger sl and tp, then the time that it takes to post, be alarmed, and also make the trade on your end will probably not see enough motion in price to warrant the transaction become skipped eg; some entry at price x sl 20pips and tp 30pips, lose 3pips in the time it takes to enter on your side, you still have a viable trade.

  5. #15
    SaToSwz
    Guest
    Thank you janlouie, now I know better what volatility means.

  6. #16
    HwboS
    Guest
    Volatility - I think that is what you are asking about. There are a lot of factors that can raise volatility within any given currency pair, I will always counsel any newbies to pick their pairs quite attentively to begin with. Some pairs are obviously a lot more volatile than others that can affect the way that your system performs. The best way to determine volatility would be to look at the daily range of the given pair.

    It is crucial to remember lots of the volatility relies on fundamentals, i.e news. Should you keep your eyes on the scheduled releases then you can avoind news driven spikes however some releases are not scheduled and may have an adverse influence on the market. My advise is to attempt to trade the less volatile pairs to begin with.

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