The team here at Currensee towers was pleased to see John Forman from Thomson Reuters IFR Markets writing on DailyForex this morning about yesterday's Currensee blog post by Tim Mazanec. Both wrote about volatility in the Forex market. Tim was seeking a way to find a currency pair ready to break out of a narrow range, and he looked to the Community Historical Volatility widget for some clues. John added some thoughts - and some charts - on using Bollinger Bands and Average True Range (ATR) to spot developing trades.
A look at the Historical Volatility widget for NZD/USD shows that the first support level (0.68918) and first resistance level (0.70118) are about 120 pips apart. That’s not quite so narrow as spread between the S3 and R3 levels Tim mentioned, but combined with the other volatility readings noted above, it definitely gives us something to think about.
Be sure to check out the full post over at DailyForex where you can also read a review of Currensee. You can read more of John Forman's Forex posts here, and more from Tim Mazanec here. John's blog is called The Essentials of Trading and Tim writes at HedgeForward. Both Tim and John are members of Currensee.
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.