Volatility A Forex Traders Best Friend and Enemy

Volatility is the measure of how drastically a market’s prices change.

This is where understanding and using volatility indicators can help you trade more effectively and keep your expectations in check.

Volatile periods in the markets can, in the worst scenario, create wild and sharp swings in the markets which can make them difficult to trade. We often see extreme volatility after certain news releases and world events that are extreme in nature and this type of action are easily seen on the chart.

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