Showing posts with label Volatility Indicators. Show all posts
Showing posts with label Volatility Indicators. Show all posts
Monday, April 23, 2012
Bollinger Bands
Bollinger Bands – a simple yet powerful indicator, ideal for traders who like visual style of trading.
Bollinger Bands: quick summary
Created by John Bollinger, the Bollinger Bands indicator measures market volatility and provides a lot of useful information:
Average True Range (ATR)
Developed by Wilder, ATR gives Forex traders a feel of what the
historical volatility was in order to prepare for trading in the actual
market.
Forex currency pairs that get lower ATR readings suggest lower market
volatility, while currency pairs with higher ATR indicator readings
require appropriate trading adjustments according to higher volatility.
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