Forex encyclopedia

Random article: What is volatility?
Volatility is a statistical indicator that displays the degree of currency price dynamic. Volatility is considered one of the most important indicators that helps manage risks. Simply put, volatility is the difference between the minimum and maximum price in a specific time interval. Most often, traders observe daily volatility. In this case, the value of volatility will be the difference between the maximum and minimum price for the trading day. You should understand that Forex is a market that is characterized by continuous changeable price movement. In this regard, the volatility for two different days, weeks or months may differ.
By technical analysis we should basically understand employment of price chart (and results of its math interpretation) for further market and price forecast. Technical analysis rests upon repeated nature of market and implies that ups and downs of currency quotations on charts are rotated according to certain time periods. An advantage of technical analysis is its universal application: with its help one can research any financial contract for any period of time. The market accounts for everything. That means that any event, which could affect price behavior is already accounted by market and is reflected on the price chart. This proposition means that all factors impacting the price will be definitely reflected in its behavior, therefore, it is required to monitor quote graph.
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