http://www.downtownforex.com/2010/01/14/forex-options-how-to-make-use-of-implied-volatility-in-trading-forex/?utm_source=rss&utm_medium=rss&utm_campaign=forex-options-how-to-make-use-of-implied-volatility-in-trading-forex Your Forex Resource Site Sat, 02 Apr 2011 19:20:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.downtownforex.com/2010/01/14/forex-options-how-to-make-use-of-implied-volatility-in-trading-forex/comment-page-1/#comment-4019 Best Online Trading Secrets Sat, 12 Mar 2011 17:49:33 +0000 http://www.downtownforex.com/?p=531#comment-4019 Jim, You can use an ATR (average true range) indicator to tell you the volatility of an instrument. I quite like the Richard Dennis (Turtle trader) approach of calculating a 'unit' of volatility using the ATR of the last 14 days. The turtles would place their stop based on 'units' (14 day ATR x2) then if price reached 1 units in their favour they'd move the stop to the original entry and put on another unit until they had a total of 5 units on - provided they hadn't been stopped out along the way. Volatility is very important when deciding where to place stops. Jim,
You can use an ATR (average true range) indicator to tell you the volatility of an instrument. I quite like the Richard Dennis (Turtle trader) approach of calculating a ‘unit’ of volatility using the ATR of the last 14 days. The turtles would place their stop based on ‘units’ (14 day ATR x2) then if price reached 1 units in their favour they’d move the stop to the original entry and put on another unit until they had a total of 5 units on – provided they hadn’t been stopped out along the way.
Volatility is very important when deciding where to place stops.

]]> http://www.downtownforex.com/2010/01/14/forex-options-how-to-make-use-of-implied-volatility-in-trading-forex/comment-page-1/#comment-1599 Jim S Sun, 15 Aug 2010 19:19:26 +0000 http://www.downtownforex.com/?p=531#comment-1599 Where can one find a graph or chart showing if implied volatility is rising or falling on indexes? Where can one find a graph or chart showing if implied volatility is rising or falling on indexes?

]]> http://www.downtownforex.com/2010/01/14/forex-options-how-to-make-use-of-implied-volatility-in-trading-forex/comment-page-1/#comment-1392 trading @forex options Mon, 14 Jun 2010 10:28:29 +0000 http://www.downtownforex.com/?p=531#comment-1392 Very nice topic, it helps a lot. Very nice topic, it helps a lot.

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