Hi all,
I have been slowly working through the Pips School and making progress learning this and that. Still a long way to go and I am supplementing it all with other books and charts and things to try to get a handle on things. All sems to be sinking in and does make a lot of sense, so optimism is alive.
However, :mad: Can anyone offer any decent advice on identifying market environment, what sort of market your looking at at a particular time with its directional movement and volatility.
I was reading a book today and it got me a bit confused. [B]How does this stack up in your eyes?[/B] This is what it read:-
[I]Directional movement is the net change in prices over a specified number of time units. Volatility is the aggregate price movement over a specified number of time units given a minimum measured price fluctuation.
E.G
WEEKLY AVERAGE PRICE
117.5
116.9
117.7
118.0
117.4
117.5
117.0
118.1
DM = .9 - Where does this come from?
V = 4.3
[/I] The Volatility number is a raw value and is typically used as the variable to compute a volatility index or moving average.
I realise identifying the market environment is a very important issue and a big help to a trader so any advice anyone can offer on this point will be a big help.
Thanks, guys,
BARRY :eek:
