Fundamental volatility

I started trading last year March, I have been trading economy reports. When I watch old videos back in 2019 they were too volatile but now they don’t move like they used to move before they used to move 50pips+ but now they move only 10 pips, what could be the problem

Volatility in forex trading is a measure of the range of sharp price changes and the frequency of these fluctuations over a certain period of time. It is measured in standard deviations. Forex traders thrive on a certain amount of volatility in the markets, since this is what creates trading opportunities.

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Ohh it looks like you have the right information so is it true that the data release movements are impacted by the pandemic? Because I got back to zero I was having a very powerful profitable strategy thru it now I’m back to square one

What pairs were you trading then and now? Also what kind of economic news? :open_mouth:

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Yes, market volatility has definitely affected by the pandemic, now the movement after release of economic data is very less.

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the market moves to where it is going for the big traders. before covid news reports drove spikes to where the large traders wanted to enter. now they can drive it with out the news because of the pandemic hitting every where

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Hey there! Ok, so according to me, one of the prime reasons for the market volatility could be accounted to more traders trading together at the same time, that eventually results in the price making very small movements up and down. Don’t forget that currencies are highly affected by numerous social, political, and economical events that make the prices become volatile.

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It’s true that the market volatility has been affected by the pandemic but now it is getting back to normal. I think that you must check your strategy once again and demo trade with it. It will get easier for you to understand what went wrong actually.

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This concept of fundamental volatility may be more meaningful than the usual measures of volatility for market regulators. Fundamental volatility can be obtained using a stochastic volatility model, which allows us to `filter’ out the signal in the volatility information.

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Thank you all for your help guys,I wish fundamentals can go back to normal