Forex encyclopedia

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.
In measurement formula for Joe Granville indicator, close prices compared with the purpose of adding or deducting of volume, whereas Williams' indicator open and close prices are compared. Marc Chaikin compares close prices with the middle of range from minimum to maximum. The history of indicator is interesting on its own. In Larry Williams formula, Chaikin substituted open price for price of range. The reason of change was not that he considered it wrong, but that he was not able to find data on prices of opening. That time prices were taken from daily papers, which, due to some reason, stopped publishing prices of opening.
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