Forex encyclopedia

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.

Parabolic SAR is the technical indicator developed by Welles Wilder for analyzing trend movements. The first time it was announced in a famous book “ New Concepts in Technical Trading Systems” published in 1976. SAR stands for as “stop and reverse”. Parabolic SAR is one of a few indicators that signalize about closing of positions. In many respects Parabolic is similar to a moving average with the only difference that SAR can change position against price. Under ascending tendency, the indicator is drawn under prices (candles, bars), under descending tendency it is put above prices. When price crosses Parabolic line, reversal of the indicator takes place.