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Trading on the financial instruments with high volatility is rather a difficult task, especially for intraday traders. In this case technical analysis works with a lower success rate than when you are trading the daily charts of the major currency pairs. Therefore, in the trading on the volatility is necessary to consider some features which will be discussed in this article. The advices presented below will help anyone who trades on the Forex, no matter what strategy they use. The first advice relates directly to pairs with high volatility. Such pairs should not be tradable beneath the hour time frame. Fluctuations in prices lower H1 does not largely carry a scenario of price changes, they are difficult to predict the movement and do not represent the actions of the crowd from a logical point of view. Therefore, if you are going to trade on the volatility instruments within the day, do not use the time-frames below H1.
Popular article: Forex drawdown
Forex drawdown is a decrease of an investment capital which happens as the result of multiple losing positions. These trades may alternate with profitable ones. The definition of drawdown is termed numerically as the difference between the peak and the trough of the curve of capital.
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